Tax and Accounting Regulations
Companies of all organization forms can use General and Simplified Tax Systems. There are restrictions on using Simplified Tax System (STS) concerning asset size (no more than USD 3m), number of workers (no more than 100) and trade turnover (no more than USD 2m). Using Simplified Tax System, the Company is not allowed to have more than 25% corporate shareholders (the Nominee Shareholder should be).
The Company has two options of income tax payment:
- 15% of profit (proceeds less expenses)
- 6% of proceeds
The Tax has to be paid quarterly. The reporting is filed once a year.
VAT. The Company is not a VAT payer except the import operations и the VAT payment for foreign counterparty. It is possible to register a Company as a VAT payer on your own initiative.
The General Tax System (GTS). The income tax is 20%. It is paid to the difference between profit and expenses. The components of expenses are strictly regulated and under control of Tax Service. The VAT is 18%. The Property tax (fixed assets) is 2.2% of the cost. The reporting is filed quarterly.
The Social security tax is 34% of the expenses spent on workers’ salary.
The income tax on workers is 13%.
The fee for Company support (including accounting, fiscal accounting, accounting and tax reporting submission):
|Less than 100 transactions/quarter||
|Over 100 transactions/quarter||
700 + EUR3 /transaction
300 + EUR2 /transaction
Keeping Europe Up-to-date with the Latest Legal & Financial Technology
The financial world is undergoing a technological revolution, with approximately 3 trillion financial deals entered into using digital ledger technology (DLT) and smart contracts within the next five years.
FATCA: Foreign Financial Institutions & NFFE’s
The Foreign Account Tax Compliance Act (FATCA), which was passed as part of the HIRE Act, was implemented to able foreign financial Institutions and certain other non-financial foreign entities to report on the foreign assets held by their US-based account holders or be subject to withholding tax on the relevant payments.
ICOs: A Smart Business Decision or Just a Risky Investment?
There are many financial experts voicing their concerns over ICOs being too much of a risky investment, however should we be so quick to dismiss ICOs as a legitimate vehicle? ICOs can be used as a substitute for Venture Capital funding due to parallels in the phase of company’s lifespan and risk profiles, which give potential opportunities for future start-ups and companies.
How Initial Coin Offerings Differ from Initial Public Offerings
Since the hectic and intense ecosphere of the cryptocurrency ventures conception, a new sphere has caught investors’ attention from all over the world, being coined ICOs or Initial Coin Offerings.
Reasons for the Prevalent Misappropriation of Public Funds by Officials in CIS Countries
Thorough analysis of the nature, content and determinants of the offence of misappropriation of public funds by officials, it gives grounds to reach the conclusion that a lot of different reasons somehow ‘provoke’ and ‘give the possibility’ to commit this offence.
Notional Interest Deduction: A Useful Tool for Cyprus Companies
The corporate income tax rate of a Cyprus-resident company is 12.5% on its global taxable revenue, with unilateral credit for related foreign tax suffered. Moreover, non-Cyprus residents are not liable to pay Cyprus withholding taxes on payments. Frequently, the effective corporate tax rate is much lower, or even as low as nil, due to various tax exemptions and allowances.
How Cyprus is Retaining its Competitive Edge as a Favourable EU Jurisdiction for Tax Purposes
The recent implementation and increasingly stringent tax developments globally can affect companies with offices in different countries; rendering them non-viable if certain factors are not carefully considered.
5 Important Considerations When Starting a New Business
According to commercial regulations in many common law jurisdictions, Directors have a duty of care requiring them to act in good faith for the company’s best interest, and using reasonable consideration of all available options before acting.