Cyprus: Interview with Gold Magazine on the article “Professional services” December 2021
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Legal profession in the second year of the pandemic:
The second year of the pandemic has spared no effort and, of course, the legal profession has not been able to remain unscathed. Restrictions on gatherings, remote working, the rapid development of electronic authorization of transactions and the increase in the use and application of FinTech in all markets and sectors have brought about changes, many of which have taken the form of legal and fiscal updates. The second year of the pandemic has been full of contradictions. On the one hand, fundamental freedoms have been severely restricted again, and on the other hand, E-commerce saw a strong global increase of over 38% year-on-year, reaching $ 876 billion in the first quarter of 2021, as noted in Forbes. Several improvements to the way legal services are delivered have been made or at least initiated.
Improvements prompted by the pandemic:
The digitization of basic commercial public services (Company and Intellectual Property Registry website, Tax Department, Merchant Marine Department) and a commitment to finalize and use the i-Justice system, are indicators that the legal profession in Cyprus is developing in the right direction. direction by becoming more accessible, more efficient and less expensive. Local and international companies and organizations have a greater incentive to invest in key sectors of Cyprus, which now include alternative energy, education and medical services, in addition to the traditional real estate sector.
Country and sector specific challenges in Cyprus:
The Cypriot professional sector is required to keep pace with technological developments taking place on the one hand at the speed of light and on the other hand in a geopolitical landscape marked by controversy and uncertainty; in particular with regard to the exploration, extraction and supply of natural gas from reserves legally held by Cyprus. The OECD suggestion for the adoption of a common tax rate of 15% by multinational entities, approved by 136 jurisdictions (out of 140) members of the OECD BEPS inclusive framework, in October 2021, has already paved the way for the long-awaited overhaul of the Cypriot tax system. The increase in the offer of online services and tours has led to a necessary review of the value added tax system and its application at EU level, with Ecofin recently approving the application by Member States reduced VAT rates in specific circumstances. Finally, the EU regulation on sustainable disclosure was the subject of considerable monitoring during the year 2021. Financial market players and experts are now required to document how they assess sustainability risks when making investment decisions and comply with regulations requiring transparency. A new IFRS standard is being developed and expected in 2022 which will audit the reporting process, and a single European access point, which will represent a single access disclosure database. An increase in the use and applications of cryptocurrencies based on the advancement of blockchain technology has led member states to consider the introduction of regulations such as the requirement to register with the Cyprus Securities and Exchange Commission of the crypto asset service provider.
Ways to respond and overcome challenges:
All of these changes force the professional sector to keep abreast of updates and respond by training staff and associates. In addition, to provide a high level of service encompassing multidisciplinary awareness, while adopting a resilient growth mindset. It is an interesting time to be in the professional services industry as we will see fundamental changes in the way services are delivered. We expect a reduction in physical points of service and an increase in the demand for and supply of independent expert services.
Take this opportunity to offer you and your families a great holiday season and a happy new year 2022.
Originally posted by Gold review.
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