What is “tax optimisation” or constitutes “effective tax planning?”
Tax payments play an important role in the cost of any organisation. Regarding any type of expenditure of the company, tax planning must be considered carefully. Tax optimisation is particularly important during periods of lower demand, when the primary task for each company is to provide a competitive advantage in a specific area of business.
With years of successful experience in the development and implementation of tax instruments, as well as regarding matters of complex support companies in taxation, our specialists are ready to offer solutions that will enable your company to obtain additional financial resources. Our goal is to improve our client’s profitability through the effective management of taxes.
As per our client needs, we provide the following services:
- Advice on general tax optimisation. Our advice is based on current tax of each jurisdiction and the Civil Code, as well as taking into account the current practice of law by the relevant tax authorities. Before issuing a response to the client we will coordinate their views with the opinion of tax authority executives.
- Tax expertise. Our experts assess the tax consequences after the ruling of the commission and how it will affect certain transactions. Evaluation is carried out regarding how to correctly pay taxes on each specific case, as well as taking into account the risk of additional tax charges related to the structure of the case. As part of our package of services, we can offer to make changes to the contracts for the purpose of minimising tax burdens, as well as for the preparation of related documentation.
- Development of a tax policy. The current tax legislation, despite its rigidity, provides entrepreneurs with different alternatives reflection of various objects of tax accounting. A properly designed tax plan for the company, taking into account all the particulars of the business and focus on the optimisation of taxation is an integral part of a comprehensive approach to tax management.
- In most cases, the responsibility for the development and approval of tax policies rest with the head Accountant at the company. The most common tax policy formed the basis not only of the interests of business, because of the principle of convenience and ease of accounting. We use fiscal policies in each relevant jurisdiction as a tool to reduce the tax burden and additional financial resources for the enterprise.
- Tax planning for specific transactions. Often there are situations when the company needs to make is not typical of the normal activities of a deal. An example is the deal with real estate, securities, foreign trade, etc. The probability of making a mistake in this case is considerably increased. And least of all in such cases, the client thinks about the tax implications. Our experts will help the best way to execute documents and carry out the necessary operations with minimal tax consequences.
- Individual Tax Management: Depending on the size and nature of the business, differently sensitive to different taxes. For some companies the largest portion of tax payments goes to VAT, for others, tax on wages. Our company is able to offer on point technical solutions to optimise taxation of each payable tax. Our solutions are based on the use of the opportunities provided by the current tax legislation. We do not use “one-day firms.” Furthermore, we take on fiscal responsibility for the validity of the applications we use to reduce the tax buden.
- Integrated support for business tax. Get maximum results from the use of tax efficient tools possible with an integrated approach. If the business has reached more than $ 1 million revolutions. per month , it is necessary to raise the issue of the formation of the optimal holding structure . An integrated approach involves the formation of a group of companies , and the company can be registered in different tax regimes , or even in different jurisdictions , depending on their functionality.
The result?
As a result of cooperation with our company, the client receives:
- A rationalised structure of ownership & management of business processes.
- The optimum scheme of commodity-cash flow.
- Convenient & simple contractual relations in the group of companies.
- Effective legal & tax optimisation schemes that will ensure minimisation of the tax burden.
- A flexible system of tax administration in a group of companies.
- The ability to legally pay income business owners with minimal tax costs.
What is the correct procedure for the optimisation of taxation?
Step 1: Analysis and construction of the conceptual model.
At this stage, the analysis of the client’s business and a model of work is established. Based on the analysis offered several options can be offered. Suggested options are issued in the form of a presentation with all necessary explanations and references to normative documentation. Also there are approximate calculations of key financial indicators the options compared with the selected model. After the presentation, the customer selects the most appropriate option to him. The selected option is finished to the stage of preparation for self-introduction by the client.
Client is provided with all necessary information, objects and material terms of the contract. The terms and procedure for payment calculations, tax consequences, risk analysis, justification of “business purpose” of each contract as well as the transaction as a whole.
Step 2: Preparation of documentation for the implementation of the scheme.
Our experts can prepare the necessary documents for the implementation of the developed scheme. When performing this step, our specialists agree with the customer the form and content of the primary accounting documents (invoices, statements, invoices, etc.)
Step 3: Support schemes to implement this phase assuming financial responsibility for the tax consequences as a result of the implementation of the proposed scheme.
Under phase support, we take the responsibility for its completion and / or any modifications made due to changes in the law or the nature of the client’s business; preparation of documentation for any third parties (including tax authorities) on the scheme being used; representing clients in state authorities connected with the scheme.
Examples of tax planning in European countries:
- For distributors and retail.
- The use of trademarks.
- The use of leasing.
- Imports from China.
Does our Cyprus company need to register for VIES?
Companies that are selling goods or providing services to EU countries are required to register in VIES. VIES declarations are submitted on a monthly basis. Once a company is registered in VAT & VIES Authorities it must submit its declarations on time. Failure to do so results in the payment of monthly and quarterly penalties.
What are the agreements for Double Taxation Treaties (DTT)?
Such agreements are concluded between two friendly jurisdictions and regulate issues related to the taxation of income and property companies from one state on the territory of the other. The main purpose of such agreements is to simplify the taxation of assets and to avoid double taxation (at the place of income, and in the place of registration of the company). The tax is paid, and as a rule, only one of the state treaties applies.
When must a Cyprus company register for VAT payment?
At the end of the month when a taxable turnover for the last 12 months exceeds € 15,600.00
or
At any other time, when the company sees that its taxable turnover will exceed € 15,600.00 in the next 30 days.