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
Notional Interest Deduction: A Useful Tool for Cyprus Companies
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How Cyprus is Retaining its Competitive Edge as a Favourable EU Jurisdiction for Tax Purposes
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The Legal Consequences of the Unlawful Transfer of Personal Client Data to Third Parties: UK Case Study
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Dormant Companies: A Definition by the Cyprus Inland Revenue Dept
Following Circulars No.2011/11 and No.2011/5, this article will explain what a "dormant company" is, its symptoms and consequent requirements. The following is an extract from PART 1.7 of the "Company Income Statement" form (EP 4), whereby a definition of a dormant company is considered to be a company that meets the following conditions:
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Information Security & Factors that Contribute to Data Leakage in the Ukrainian & UK Banking Sector
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Troika Lenders Visit Cyprus Following Withdrawal From Bailout Programme
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The EC's Plans to Reduce NPLs in Europe May be Beneficial for Cyprus
Last month, the European Commission proposed an ambitious and comprehensive package of measures to tackle non-performing loans (NPLs) in Europe, making the most out of the promising progress already made in reducing risks in the banking sector.