Oil & Gas in Cyprus
Where potential lies
The development of the oil & gas sector in Cyprus continues. The recent discoveries of hydrocarbons within Cyprus Exclusive Economic Zone (“EEZ”) has attracted a lot of attention internationally and has created locally a lot of optimism about the future. Over the past decade, Cyprus has awarded exploratory licence agreements in the Cypriot EEZ and entered into production sharing contracts (“PSC”) with a number of global oil & gas companies that are some of the major industry players. Over this period, there was a substantial exploration and evaluation activity undertaken by the operators in offshore Cyprus.
There is no specific regime within Cypriot Income Tax Law concerning the oil & gas sector. Taxable profits from trading operations are taxable at the normal corporate income tax rate and taxable profits are determined under a framework of deductions for expenses wholly incurred in the derivation of income and capital allowances for assets used in the trade.
Deloitte's Oil & Gas practice has expert presence in every continent and each major Oil & Gas center around the globe. Our global network is consist of 3,600+ experienced professionals that combine a dedicated group with subject matter specialists in the various oil & gas sectors.
In Cyprus, Deloitte provides a complete range of advisory and compliance services which are needed by any international oil & gas industry participant planning activities in Cyprus. Our services span the fields of audit & assurance, financial advisory, consulting, corporate and personal taxation, VAT and human capital services, which equip our clients with the prerequisites to succeed.
We were involved in the oil & gas industry from the very beginning. We are a professional services firm with actual, on the ground experience in all facets of the oil & gas industry in Cyprus for the past six years serving the major industry participants and suppliers.