CYPRUS Law and Practice Contributed by: Marios Pelides and Dominique Pelides, Georgiades & Pelides
2.6 Calculations of Jurisdictional Thresholds Basic Position
tenth of their balance sheet during the preced - ing financial year; and (ii) insurance companies, where turnover is deemed to be equal to the value of their gross premiums during the pre - ceding financial year. This includes all amounts received and receivable on account of their insurance contracts, but excludes taxes and duties charged on individual premiums or by reference to the total volume of premiums. 2.7 Businesses/Corporate Entities Relevant for the Calculation of Jurisdictional Thresholds When calculating an entity’s turnover for the pur - poses of assessing whether it meets the jurisdic - tional thresholds described in 2.5 Jurisdictional Thresholds , the turnover of the following entities must be aggregated with the turnover of the first entity. (a) Undertakings participating in the concen - tration. (b) Any entities in which the participants hold (directly or indirectly) more than half of the capital or voting rights, or otherwise have the power to appoint more than half of the members of the board of directors or similar supervisory or executive body, as well as any entities whose affairs are managed by the participants (or the participants have a direct or indirect right to manage such enti - ties’ affairs). (c) Any entities which have the rights/powers set out in (b) in relation to the participants in the concentration, eg, the participants’ holding companies. (d) Any entities in relation to which an entity in (c) has the powers in (b) (ie, the participants’ sister companies and other group entities that may not be direct holding or subsidiary companies vis-à-vis the participants).
An entity’s turnover includes proceeds from the sale of products and/or provision of services by it as part of its ordinary course of business activ - ity during the preceding financial year. However, turnover does not include: • sales rebates; • VAT and other taxes that are directly con - nected to turnover; or • internal transactions carried out between par - ties whose turnover is aggregated with that of the participant (see 2.7 Businesses/Corpo- rate Entities Relevant for the Calculation of Jurisdictional Thresholds ). An entity’s turnover will also be aggregated with the turnover of certain other entities (see 2.7 Businesses/Corporate Entities Relevant for the Calculation of Jurisdictional Thresholds ). All figures included in a notification must be stated in euros and should be converted using the average exchange rate for the period of ref - erence (usually the preceding financial year). In practice, parties may use exchange rates pub - lished by the European Central Bank. Exceptions Where the concentration concerns the acquisi - tion of parts of an enterprise, only the turnover relating to the parts which are the subject matter of the transaction should be taken into account. This is the case regardless of whether such part(s) are legally distinct entities. There are also separate rules governing the cal - culation of turnover for certain kinds of enter - prise. These are (i) credit institutions (eg, banks), whose turnover is deemed to be equal to one-
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