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GOLD ISSUE 53 AUGUST 14 SEPTEMBER 13, 2015 PRICE €4.95
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PRIVATISATION Transport Minister Marios Demetriades on Limassol Port
INTERVIEWS
Bruno Pepermans Jameel Ahmad Bert Pijls
INSEAD
‘The Business School for the World’ now has an alumni club
WHAT’S ON Opera, Film, Dance, Art, Music & More
SPECIAL PROMOTIONAL FEATURE
info@eurofast.eu | www.eurofast.eu
Your Regional Business Advisory Organisation
Mergers & Acquisitions and Transactional Services
Great challenge with greater opportunities! Mergers & Acquisitions (M&A) play an important role in today’s financial world. How We Can Assist You We, at Eurofast, take pride in our dedicated team of professionals, specialising in M&A and transactional work in our offices, throughout South East Europe and East Mediterranean. Eurofast has over 25 years of experience working with global businesses and leading institutions. Over the years we have performed successfully significant number of local and international M&A 7 Is your growth strategy aligned with transactions in the region. your overall corporate strategy? We have a unique approach to sup7 Have you identified the right marport M&A transactions at international kets & targets? level through our professional network, 7 Is the culture of the target company providing assistance to our clients in compatible with yours? all phases of M&A transactions from 7 Can you afford the costs now and planning process to closure and post in future? integration. 7 Have you prepared a proper inteOur fully integrated M&A and Transacgration planning? tional services include: The above are only a fraction of many issues that need to be taken into con- 7 Research of the business environsideration when planning for M&A. ment and market 7 Searching for investors/targets & approach 7 Due diligence (legal, tax and financial) 7 Price negotiation, contract negotiation and closing 7 Sourcing of capital Many organisations, in many regions, are using M&A as a key part of their growth strategy to expand their business operations to gain increased market share, access to new markets, technology and talent, and so on. Whatever the reasons are, M&A bring about great opportunities which come with great challenges.
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key component of litigation is the Discovery process, whereby each party provides relevant evidence to other parties in the litigation. Discovery presents a risk to litigants, and, if inadequately managed, may have a significant effect on the success and cost of the litigation. Discovery however also presents an opportunity for litigants to maximise their informational, evidential and strategic advantage. In our days, evidence in a case is not going to be primarily from tape recorders or handwritten notes. Instead, evidence will reside in electronic documents, spreadsheets, emails, social media accounts, in the cloud, or moreover on smart phones and tablets. Lawyers must have the capability and support that’s necessary for collecting this data to successfully use it in their cases. Litigation Support When lawyers take on clients and cases containing electronic media (laptops, disks, servers, mobile devices, etc.) and large amounts of data, they may not know where to turn for guidance. Deloitte Discovery services were designed to manage large volumes of data during investigations - whether the data is already available in electronic format or in hard copy - as well as efficiently managing all technical aspects. Our Discovery services include forensic data collection, handling, retention and analysis of data with specific tools and methodologies in order to find information and evidence relevant to the investigation. Discovery services can be tailored to the specific needs of each investigation by including only those specific phases of interest. Forensic Analysis & Investigation Services Our Litigation Support services are further enhanced by access to other services offered by Deloitte forensic practitioners. In particular we utilise our Forensic Technology specialists,
“While storage of data is becoming easier to manage affordably, its proliferation is a major information management and litigation risk. We are far past the days when all information potentially relevant to a matter could fit into a law firm conference room” Panicos Papamichael
forensic and investigative professionals and technologically advanced computer labs and sophisticated software to offer new, innovative solutions to our clients’ complex legal problems. We have the skills and resources to navigate information technology systems for evidence of malfeasance, such as information deletion, policy violations or unauthorised access. Our professionals can recover a wealth of information from computer hard drives and backup tapes, including active, deleted, hidden, lost or encrypted files; file fragments; and even files that were merely viewed but never saved. Deloitte Discovery Services • eDiscovery • Forensic Data Collections • Computer Forensics • Cloud Forensics • Mobile Forensics • Cyber Incident Response • Cyber Incident Readiness Consulting
For more information on Deloitte’s Discovery services, please contact: Panicos Papamichael Partner, Enterprise Risk Services ppapamichael@deloitte.com | +357 22 360805
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RECENT AND PROPOSED CHANGES IN THE TAX LEGISLATION OF CYPRUS By Neofytos Neofytou
I
n July 2015, Cyprus introduced part of the proposed changes to its tax legislation for the purpose, amongst others, of introducing incentives to encourage new investments in Cyprus and the setting up of regional headquarters on the island by international groups, including those in the shipping industry. The remaining changes are expected to be introduced in September-October 2015. The most important amendments to the previous laws are summarized below.
6 | GOLD | www.goldnews.com.cy
A. NEW INVESTMENT OPPORTUNITIES IN CYPRUS 1. Notional interest deduction on equity Cyprus has introduced provisions to allow the notional deduction of interest in cases where funds are introduced to the company in the form of equity instead of interest- bearing loans. The main provisions are: • Deemed interest deduction will be allowed
on “new equityâ€? funds introduced into a company after 1 January 2015. • The deemed interest will be calculated on the basis of a “reference interest rateâ€?. This rate is equal to the yield on the 10-year government bonds, plus 3%. • The notional interest to be deducted cannot exceed 80% of the taxable income of the company. 2. New capital expenditure Under existing rules, capital expenditure incurred during the years 2012, 2013 and 2014 qualifies for increased wear and tear allowances. It is proposed that this benefit be extended for capital expenditure incurred in the years 2015 and 2016.
B. ESTABLISHING OFFICES AND RELOCATING SENIOR STAFF IN CYPRUS A number of incentives for encouraging the setting up of regional headquarters in Cyprus by international groups, including those in the shipping industry are introduced. 1. Employment incentives Under current law, 50% of the income from employment in Cyprus which commences after 1 January 2012 of a person who was not tax resident of Cyprus during the previous tax year is exempt from taxation for a period of five years, provided the income from employment in Cyprus exceeds â‚Ź100.000 per annum. It is now proposed that the period of the incentive be extended to 10 years. 2. Introduction of the “non-dom conceptâ€? for defence tax purposes Currently, the defence levy is payable only by Cyprus tax resident individuals and is payable on dividends, interest and rental income earned by the tax resident individual both from sources within Cyprus and outside Cyprus. The law has been amended so that Cyprus tax resident individuals who are not considered to be “domiciledâ€? in Cyprus would be exempt from payment of the defence levy on dividends, interest and rents, even if they are considered to be tax residents of Cyprus.
C. OTHER CHANGES • Extending the group loss relief provisions to cover losses of overseas subsidiaries. • Exchange differences will no longer be taxable/tax deductible (except in the case of companies trading in foreign). • In the case of transactions with related parties when an adjustment in the income of the one party, a corresponding deduction should be given to the other party to the transaction.
CONTACT INFORMATION
Taxatelier Ltd (KKYLZZ! +LSMVU :[YLL[ [O Ă…VVY 5PJVZPH *`WY\Z 7VZ[HS (KKYLZZ! 7 6 )V_ 5PJVZPH *`WY\Z Tel: (+357) 22875720 Fax: (+357) 22875721 L THPS! PUMV'[H_H[LSPLY JVT J` >LIZP[L! ^^^ [H_H[LSPLY JVT J`
www.goldnews.com.cy | GOLD | 7
ISSUE 53 AUGUST 14 - SEPTEMBER 13, 2015
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| COVER STORY |
W
e all know that Cyprus has worked hard over the years to gain a reputation as an international business centre, attracting foreign companies to set up branches and even headquarters here so as to take advantage of the island’s favourable tax regime. But there has always been much more than tax planning to this arrangement. Companies are, after all, made up of individuals and while XLSWI XLEX HIGMHI XS MRZIWX MR SJÁGIW ERH IUYMTQIRX MRZEVMEFP] take advantage of the country’s talent pool and employ local professionals, many of them have a non-Cypriot CEO or Managing Director in place. On the following pages we list 40 such senior executives, who represent no fewer than 20 different nationalities, including those one might expect (British, Russian, German) as well as others that may surprise (Latvian, Indian, Palestinian). In fact, in addition to these, our list includes Dutch, Norwegian, Israeli, Slovakian, Finnish, American, Belarusian, Jordanian, Lebanese, Greek, French, Czech, Irish and South African citizens. There are doubtless others whom we were unable to discover and, of course, there are many more foreign CEOs working and living in Cyprus, some of whom simply didn’t want to be included in our list for reasons of their own. We are happy to feature the 40 who responded positively to our request for information, and especially those who explained in some detail why they enjoy the professional and personal lifestyle that Cyprus offers them.
+
FOREIGN
CEOS IN CYPRUS By John Vickers
CONTENTS 10 | EDITORIAL 12 | BUSINESS BRIEFING
Economic & Business Highlights of the past month
16 | MY WAY
Bert Pijls’ management style
17 | FIVE MINUTES WITH… Jameel Ahmad
18 | THEY SAID WHAT?
A selection of memorable recent quotes
COVER
STORY
OPINION 41 | The Day After
By Kyriakos Iordanou
20 | Foreign CEOs
48 | What if...
in Cyprus Why they like Cyprus as a place to work and live.
By Savia Orphanidou
FEATURES 34 | The Future Is Now
Interview with Bruno Pepermans, Business Development Director Europe, RICS
37 | The Cyprus Funds Summit
Promoting Cyprus as an Investment Fund Hub
38 | Spreading the Word
The formation of an INSEAD Alumni Club in Cyprus.
42 | Yes We Cannes!
50
Stelios Anastasiades at the Cannes Lions International Festival of Creativity
46| Lord Lamont to Address the
6th Limassol Economic Forum Big names are lined up for the year’s most prestigious conference
34
50 | First Port of Call
Limassol will soon have what it takes to become a regional hub
54 | Investing in a Global Marketplace
Emergo Wealth presents the Investment Expert Conference
90 | Dream Team
100
Roman Nikitin, Alexis Tsielepis and Constantinos Adamides
SPECIAL PROMOTIONAL FEATURE 55 | Leading Law Firms in Cyprus 56 | 50
Biggest Law Firms
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8 | GOLD | The Business Magazine of Cyprus
92 | Bringing People Together
Last month’s International Cooperative Conference
94 | BOOKSHELF
Five of the best new business titles
96 | IN GOOD COMPANY
Exploring the professional journey of employees at Hermes Airports
98 | MY COLLECTION
Demetris Fessas on his collection of vintage toys
100 | LUNCH WITH GOLD Evan Gavas, former Country Director of Barclays in Cyprus 103 | BUSINESS CLASS Captain Eberhard Koch, Chairman, CEO and Managing Partner of Österreichischer Lloyd Seereederei (Cyprus) Ltd
104 | WHAT’S ON Gold’s guide to the best cultural events 106 | A DAY IN THE LIFE George Theocharides
A great cup of coffee.
1. Engomi 2. Strovolos (Aretaieio) 3. Strovolos (Athinon) 4. The Mall of Cyprus 5. Pallouriotissa (Kantaras) 6. Larnaca (Finikoudes) 7. Limassol (Makariou Aven.) 8. Ayia Napa (Makariou Aven.)
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| EDITORIAL |
GOLD
Island Life
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Transport Minister Marios Demetriades on Limassol Port
INTERVIEWS
Bruno Pepermans Jameel Ahmad Bert Pijls
INSEAD
‘The Business School for the World’ now has an alumni club
WHAT’S ON Opera, Film, Dance, Art, Music & More
PUBLISHED BY IMH ISSN 1986 - 3543
MANAGING DIRECTOR
George Michail
GENERAL MANAGER
t’s easy to take k things hi for f granted d when h you are a permanent resident of a place like Cyprus, enjoying for free the things for which several million visitors every year are willing to pay – sunshine, good food, friendly people, low crime, a relaxed way of life and much more. But people who are here because of their business obligations, and may well be on the island for a finite period, tend to be far more appreciative of what Cyprus has to offer than those of us who have had the good fortune to call this place home. I mention this after being struck by the responses to questions we asked some of the foreign CEOs who feature in this month’s cover story and, in particular, how certain issues were cited by more than one of them as being among Cyprus’ advantages as a place to live. We all know about the usual ‘selling points’ that the Cyprus Tourism Organisation has used in countless advertising campaigns but living and working here is not the same as being on holiday, whatever our jealous friends and family elsewhere may claim. So I found it interesting that several CEOs noted, for example, the fact that they can get to work in a matter of minutes or that they can arrange on the spur of the moment to go out with friends – something they evidently cannot do at home. The country’s small size is actually viewed in a positive light when, for many residents, it is unfavourably compared with bigger places where there is so much more going on. It’s all relative, of course, and while the lack of long distances for commuting and time-consuming traffic jams are not really a feature of life in Cyprus (with the notable exception of the capital at 8am) because it is a small place, there are even smaller ones, as Evan Gavas, my lunch guest for this issue’s Lunch with Gold feature (page 100) realized when he was posted to Jersey, an island of 100,000 people. “In comparison with Jersey, Cyprus is New York!” he told me. Having lived here for 43 years, I recognise that I no longer see the country through the same lens that I did when I arrived in 1972. Like many of you, I’m sure, I have been grumbling about the 40°+ temperatures with which August began and I am still shocked by some of the examples of bad driving I see on a daily basis, not to mention the more outrageous statements by politicians and state officials who should know better. But when my newsagent makes a point of saving me a new magazine that he thinks I might like, or the parcel from Amazon with a guaranteed delivery date actually arrives on time, I remember, like many of our featured foreign CEOs, that there is a lot more to Cyprus John Vickers, than sun, sea, sand and souvla. Chief Editor See you in September! john@imhbusiness.com
10 | GOLD | The Business Magazine of Cyprus
PRIVATISATION
Daphne Roditou Tang MEDIA MANAGER
Elena Leontiou
EDITOR-IN-CHIEF
John Vickers
JOURNALISTS
Effy Pafitis, Artemis Constantinidou CONTRIBUTORS TO THIS ISSUE
Stelios Anastasiades, Kyriakos Iordanou, Neofytos Neofytou, Savia Orphanidou ART DIRECTION
Anna Theodosiou SENIOR DESIGNER
Alexia Petrou
PHOTOGRAPHY
Jo Michaelides
MARKETING EXECUTIVE
Kevi Chishios
SALES MANAGER
Irene Georgiou
SALES EXECUTIVE
Stavros Epifaniou
OPERATIONS MANAGER
Voulla Nicolaou
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