Our tax advisors can help you to take full advantage of the opportunities offered for effective international tax planning using Cyprus and other jurisdictions. Also, can find legitimate ways to minimize your tax liabilities and as the same time avoid penalties.

Our services include:

• • Preparation and filling of all related corporate income tax returns
  • Preparation of provisional corporate income tax form
  • Provides tax planning and advisory services in relation to acquisitions, reorganization schemes and disposals
  • Provides tax planning regarding double tax treaty
  • Prepare tax computations
  • Liaising with Tax Authorities and obtaining tax clearance certificates, tax residence certificates, and double taxation certificates.

Cyprus tax resident is a physical person who lived in the Republic of Cyprus for more than 183 days in a tax year or if a taxpayer stays in Cyprus for one or more periods equal at least to 60 days.

Our tax department provides our clients with tax knowledge in order to help them with any personal taxation issue such as tax planning and investment planning.

Our services include:

• • Preparation and filling of all related personal income tax returns
  • Submission of the tax return to the Inland Revenue Department
  • Advice, preparation and submission of the Capital Statements to the Inland Revenue
  • Liaising with Tax Authorities and obtaining tax clearance certificates, tax residence certificates, and double taxation certificates.
  • Provides tax planning regarding double tax treaty
  • Preparation of personal tax computations, projecting PAYE and Social Insurance obligations

The law requires that payroll taxes must be withheld from an employee’s paycheck. Employers must then transmit these withholdings to various tax agencies. Payroll tax deductions include social insurance cost, income tax and etc. Also, the employers should submit every year the employers’ tax declaration to tax authorities.

Our services include:

• • Calculation and payment of social insurance
  • Calculation and payment income tax (PAYE)
  • Preparation and submission of employee’s tax return
  • Calculation and payment of Gesy contributions

Our tax expertise can advise and provide tax planning on all aspects of relocation (moving from one country to another), working with businesses who employee staff overseas and with individuals who work in a different country from the country of tax residency.

Our services include:

• • Preparation and submission of employee’s tax return
  • Submission of the tax return to the Inland Revenue Department
  • Provides tax planning regarding double tax treaty
  • Liaising with Tax Authorities and obtaining tax clearance certificates, tax residence certificates, and double taxation certificates.

VAT is imposed on the provision of goods and services as well as on the importation of goods into Cyprus.

The standard rate of 19% applies on all goods and services in Cyprus which are not subject to the zero rates, the reduced rate or are not exempt.

The reduce rate of 9% applies on all restaurant or catering services, accommodation in hotels or similar lodgments and the transportation of passengers.

The reduce rate of 5% applies on food and beverage (excluding alcohols), pharmaceutical products, books magazines and newspapers, hairdressing services, catering services for schools, renovation and repair of private house, entry fees at sports events and theaters.

Zero rate applies on repairs and maintenance on see going vessels and aircrafts and on exportation of goods.

Exempt supplies include insurance services, financial services and medical care services.

The registration is compulsory if the value of the taxable supplies is in excess of €15,600 during the 12 preceding months or if the expected turnover is in excess of €15,600 in a period of 30 days or if provides services to a VAT registered person within the European Union with nil registration threshold.

VAT is an indirect tax imposing significant cost and compliance burdens. It is one of the most important and complex tax issues that a businesses can face. Our tax specialists assist clients with VAT compliance obligations and provide services in relation to international transactions involving VAT/VIES/MOSS. Non compliance with VAT regulations can be costly and the fines for failure to comply with laws and regulations may result in excessive penalties.

Our services include:

• • VAT/ VIES registration
  • Preparation and filling VAT/ VIES/ MOSS returns
  • Efficient VAT recovery
  • Negotiation with the VAT authorities
  • Advise on mitigation of VAT cost
  • VAT/ VIES de-registration

Capital Gains Tax is imposed on gains from the disposal of immovable property situated in the Republic including shares of companies not listed on a recognized Stock Exchange which own immovable property situated in the Republic, at the rate of 20%.

In computing the capital gain the value of the immovable property as at 1 January 1980 or cost if the date of acquisition is later, the value of any additions as at 1 January 1980 or cost if the date of the addition is later, any expenditure incurred for the production of the gain and the indexation allowance, are deducted from the sale proceeds.

Our services include:

• • Advice and calculate the Capital Gains Tax
  • Advice and calculate the Immovable Property Tax
  • Advice and calculate the Land Transfer Fees and Stamp Duties

Shipping Companies in Cyprus

No tax is payable on the profits from the operation of a vessel registered in Cyprus or on the dividends received from a ship owning company flying the Cyprus flag and operating in international waters.

Information about Insurance Companies

Losses of the life business can be offset against profits of the general business

Losses of the life business can be offset against profits from other sources

Losses of the life business can be carried forward indefinitely.

Intellectual Property expert advice

The gross income arising from intellectual property rights, other exploitation rights, compensations or other similar income arising from sources within the Republic of Cyprus, of a person who is not resident in the Republic, is subject to withholding tax at a rate of 10%.

Firm Royalties

The gross income derived by a non-resident person in respect of royalties arising from film projection in the Republic is subject to withholding tax at a rate of 5%.

Royalties received by a connected company registered in a European Union Member State are exempt from tax if met the conditions

Our services include:

• • Preparation and filling of all related corporate income tax returns
  • Prepare tax computations
  • Liaising with Tax Authorities and obtaining tax clearance certificates, tax residence certificates, and double taxation certificates.
  • Advise and analyze in deep the special modes of taxation in each case

The annual levy of €350 payable to the Registrar of companies is introduced for all companies incorporated in Cyprus. The levy is payable by the 30 June of each year.

In case the levy is not paid within the prescribed period, if the levy is then paid within two months from the due date, a penalty of 10% is payable which is increased to 30% if the levy is paid within five months from the due date. If the levy is not paid within five months, the Registrar of Companies will remove the company from the registry.

Our services include:

To prompt our clients in regards to the annual levy fee

Deemed Dividends Distribution

A Cyprus tax resident company does not distribute by way of a dividend at least 70% of its accounting profits within two years from the end of the tax year then the company is deemed to have distributed such profits and is liable to pay 17% special contribution for defence on the deemed dividend distribution applicable to its shareholders who are Cyprus tax residents. For non-tax Cyprus residents the above does not apply.

Our services include:

• • Advice and calculate the Special Defence Contribution
  • Preparation and filling of all related income tax returns