Accounting, Bookkeeping & Taxation Services in Cyprus
Cyprus is currently a well established international financial center with the most desirable tax regime in the E U (European Union) and with a great number of double tax treaties. CODDAN’s specialist’s tax advisors assist their clients in taking absolute full advantage of the opportunities offered for effective international tax planning using Cyprus and other jurisdictions.
The Cyprus tax legislation is extremely desirable in as much as towards setting up holding companies of group structures by applying a zero tax regime. As companies involved in equity stock investment are tax-free.
Incom Tax
The basis of taxation with the new legislation is the tax residency. All companies are defined as resident of Cyprus if its management and control is exercised from Cyprus. Companies resident in Cyprus will be assessed on their worldwide income.
Tax rates for companies: Companies (except International Business Companies which have opted to be taxed at 4,25% for the years 2003, 2004 and 2005) - tax rate 0%, Public law constitutions - tax rate 20%, International Business Companies which have taxable income for the year 2001 and which have opted to be taxed according to the transitional arrangements for the years 2003, 2004 and 2005 - tax rate 25%, Additional tax (2003 and 2004 only) on the taxable income of a company or public law constitution if it exceeds £ 1.000.000 - tax rate 30%.
Incom Tax Exemptions: dividend income from abroad and from Cyprus is exempt from Income Tax. Profits earned from a permanent establishment abroad are exempt from income tax. Profit on the disposal of securities. 50% of interest received.
Value Added Tax (V.A.T.) - tax on taxable supplies of goods and services, made by taxable persons, in the normal course of business as well as on importation of goods in Cyprus.
A Taxable supply of goods or services is considered as outside the scope of V.A.T. in the following circumstances: Providing it is made outside Cyprus Providing it is made by a non taxable person Providing it is not made in the course of business.
There are three tax rates: standard tax rate – 15%, reduced tax rate – 5% and zero tax rate – 0%.
It is obligatory to register for VAT: At the end of any month, if the value of the taxable supplies (supplies taxed at the rates of 0% and/or 15%) in the period of the year then ending has exceeded ?9.000, At any time, if there are reasonable grounds for believing that the value of the taxable supplies in the period of 30 days then beginning will exceed ?9.000.
Business with a turnover of less than ?9.000 can be registered voluntarily.
Exemptions: rents, supplies of immovable property, insurance and financial services, medical services and educational services.
CODDAN’s VAT services: Include: negotiations with customs & excise; Attendance of VAT investigations, use of legislation to support your case; VAT registration and de – registration;
Completion of VAT returns and check on your own VAT; compliance work if necessary.
CODDAN’s VAT reviews ensure that your tax system: Complies with all current VAT legislation and procedures; Our services also include VAT reviews; VAT planning VAT assessment reviews, partial exemption reviews and planning; Advice on trading in Europe; Practical support during VAT inspections;
Book-keeping & Accounting
CODDAN’s accounts department can undertake and update accounting records, which in addition includes the administration and processing of payroll and the preparation and presentation of regular management information and reporting.
We also offer advice on specialized matters such as the selection and maintenance of accounting software, VAT compliance and a great deal more.
Accounting services, based on International Accounting Standards, provided to those clients who do not have large accounting departments.
Our Services in Cyprus
Cyprus is well known as an International Financial Centre, which affords tax benefits for both non-resident individuals and companies alike and with our knowledge and experience, we are more than willing to help clients on International matters such as the following:
The setting up of a foreign branch or subsidiary; Transfer pricing issues; Foreign tax legislation; Tax efficient funding and extraction of profits; Double taxation agreements; World wide taxation structures;
CODDAN’s specialists tax advisors can help their clients to take full advantage of the opportunities offered for effective international tax planning, accounting, bookkeeping and tax return preparation services to accountants and accounting firms in Cyprus.
We will also provide ongoing help with bookkeeping by allowing you to take advantage of our computerized service at our office.
Taxation Law and Tax Planning
Cyprus truly is an international business centre in Europe. It has been a member of the EU since May 2004 it is in a unique location too! At the cross-roads of Europe, Asia and Africa, therefore Cyprus serves as an attractive centre through which to conduct international business.
Corporate legislation of Cyprus and its significant tax benefits:
tax exempt dividend income (subject to certain prerequisites), uniform corporate tax rate of 10% for all companies (one of the lowest corporate tax rate in Europe), tax exempt profit from trading with securities, tax exempt profits from a permanent establishment maintained abroad, Exemption of capital gains (subject to exceptions), competitive personal tax rates etc.
Non EU-citizens can also utilize Cyprus corporate entities as worldwide trading vehicles, subject to investment guidance issued by the Central Bank of Cyprus.
For more information regarding VAT Registration and bookkeeping service in Cyprus, please do not hesitate to contact us.
Companies (except International Business Companies which have opted to be taxed at 4,25% for the years 2003, 2004 and 2005) - tax rate 0%,