We offer the following services:

  • Book-keeping
  • Preparation and submission of VAT returns
  • Preparation of accounts
  • Registration of new businesses for tax and VAT
  • Completion and filing of online company tax returns
  • Tax advice for small/medium sized businesses and individuals
  • Resident and non-resident tax advice

Cyprus Tax Changes – 80% exemption

 Business Setup

You can set up the following types of business in Cyprus:

  • Limited Company
  • Branch
  • Partnership

Limited Companies

This is the most popular form of company in Cyprus. There are no minimum share capital requirements for establishing a Limited Company. However, having at least one director of the company is mandatory and there should be between one and fifty company shareholders. All companies regardless of size must file annual audited accounts.

Branches

The foreign parent company is responsible for all the liabilities of the Cypriot branch and controls its activities. The branch is taxed in Cyprus at a rate of 10%. Registration with Registrar of Companies is required of the branch and annual accounts must be filed annually in Greek.

Partnership

There are two types of Partnership;

General Partnerships require between two and twenty members.

Limited Partnerships require at least one partner with unlimited liability.

Both types of partnership are required to register with Registrar of Companies and should keep appropriate books, but there are no requirements for audited accounts.

MAIN TAXES IN CYPRUS

The two main types of taxation in Cyprus are:

  • Corporation Tax
  • Income Tax

Other types of tax such as Capital Gains Tax may also be required depending on income.

Companies that are incorporated in Cyprus but are not tax residents of the country (management and control exercised outside of Cyprus) are subject to zero taxation in Cyprus.

CORPORATION TAX

This tax applies to the annual profits of any companies that are resident (managed and operational) in Cyprus.

Cypriot Corporation Tax has a flat rate of 12.5% – one of the lowest in Europe. This is applicable after any expenses have been deducted and to companies conducting business locally and internationally.

Any income from interest or dividends is exempt from Corporation Tax.

PERSONAL INCOME TAX

This tax applies to the income of all Cypriot residents, whether from within the country or from outside.

In Cyprus the tax year is the same as the calendar year. Income Tax returns are required to be filed annually by the 31st of December the following the tax year.

Tax rates depend on the amount earned:

Bracket Annual income Rate
1 up to €19 500 0%
2 €19 501 – €28 000 20%
3 €28 001 – €36 300 25%
4 €36 301 – €60 000 30%
5 €60 001 and over 35%

VAT

The rate of VAT in Cyprus currently stands at 19%. VAT is applicable to the sale of all products and services within Cyprus and imports, as well as distance sales over € 35,000. Registration for VAT is required if the business’ annual turnover exceeds € 15,600, and accounts are generally submitted quarterly.

CAPITAL GAINS TAX

This stands at a rate of 20% and applies to gains from the disposal of Cypriot immovable property. There are various exemptions available – please contact us for further details.

Useful Links:

Republic of Cyprus Inland Revenue Department

http://www.mof.gov.cy/mof/ird/ird.nsf/dmlindex_en/dmlindex_en?OpenDocument

 

Please Note:

Attention all Cyprus companies: the Company Annual Levy is due in June 2017.

Under the Company Annual Levy law, in place since 2011, an annual payment of €350 is required by all Cypriot companies, to be paid before the 30th June each year.
  • Exemptions apply to dormant companies with no annual turnover and companies without assets.
  • Financial penalties will be incurred for any late payments (after the 30th June 2017):
  • If the levy is paid within 2 months of the date due, a 10% penalty will be inflicted upon the company.
  • If the levy is paid within 2 and 5 months of the date due, a 30% penalty will be inflicted upon the company.
  • If the levy remains unpaid after 5 months of the date due, the company may be struck off the register. Return to the register will only be granted if the company pays a greater levy in the following years. If the company returns within 2 years the levy will be increased to €500. If the company returns to the register after 2 years, the levy will be increased to €750.
Levy payments can be completed online at www.jccsmart.com. For further information about the Company Annual Levy, or advice about your company’s payment, please don’t hesitate to contact us.

Make An Enquiry

For further information, please contact us on +44 (0)208 421 7474 or fill in the form below:

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