Tax and VAT Compliance

A.   Background

The tax legislation of Cyprus is in full conformity with both EU Laws and Directives and with the Organisation for Economic Cooperation and Developmentā€™s guidelines.

Additionally, Cyprus has a wide network of Double Tax Treaties (DTTs) covering an array of countries around the world, including major developed and developing nations. These treaties have very beneficial provisions, which in combination with the tax credit offered in Cyprus on tax suffered in the country of origin, can result to a more beneficial overall after-tax result than by using zero tax jurisdictions or tax-exempt vehicles.

VAT legislation in Cyprus is also in line with EU Laws and Directives. The main principle concerning VAT is that a person, who is liable to be registered, is obliged to notify the Tax Department of this liability. Every taxable person is liable to submit a VAT Return on a quarterly basis. The VAT Return must be submitted, together with payment of any VAT due within 40 days (unless other arrangements apply) from the end of each quarter. In computing VAT liability, the VAT suffered on purchases of goods and services (input VAT) is generally deductible, except in certain cases.

 

B.   How we can help

We ensure compliance with the prevailing local laws and regulations whilst we assist in managing the impact of taxes on businesses and individuals. When it comes to taxes, principles and requirements keep evolving at an unprecedented pace over the last few years and, depending on the operations and specific circumstances of a company or individual, treatment, registration and reporting requirements can become very complicated. We can provide specialised tax and VAT advice and planning as well as a complete range of services to ensure compliance with all relevant legal and other obligations. Among the services we can provide are the following:

  • Registration for corporation tax and VAT purposes
  • Arranging for the submission of tax and VAT (including VIES and INTRASTAT) returns to the relevant authorities within the set deadlines
  • Arranging for the submission of deemed distribution declarations as well as declarations of withheld contributions for Special Contribution for Defense and GESY (General Healthcare System)
  • Handling payments of levies, duties and taxes as they fall due
  • Arranging for tax and VAT clearance
  • Assistance and representation in case of tax and VAT inspections and enquiries
  • Applications for Tax Residency Certificates to be issued  
  • Preparation and submission of capital statements
  • Arranging for tax and VAT rulings and opinions
  • Applications for refund of taxes and VAT suffered abroad, depending on the facts of each case
  • Assistance for companies based outside of Cyprus with matters of Cyprus tax and VAT
  • Arranging for Transfer Pricing Studies
  • Providing tax advice to entities and individuals resident in or having business/occupational dealings with Cyprus