Cyprus companies = Firmen / Unternehmen Zyperns (Cyprus companies)
Cyprus Tax= Steuer Zyperns
Companies in Cyprus= Firmen / Unternehmen in Zypern
Cyprus lawyers= Rechtsanwälte Zyperns
Cyprus company formation= Gesellschaftsgründung Zyperns
Cyprus VAT= Mehrwertsteuer Zyperns (MwSt = VAT)
Cyprus accountants= Buchhalter Zyperns
Tax heavens= Steuerparadiese
Cyprus auditors= Buchprüfer Zyperns
Cyprus funds= (Fremd)Mittel / Gelder Funds Zyperns
Cyprus foundations= Stiftungen Zyperns
VAT in Cyprus= Mehrwertsteuer in Zypern
Cyprus double tax treaties= Doppelbesteuerungsabkommen Zyperns
Cyprus Trusts= Trusts Zyperns
Cyprus Shipping companies= Reedereien Zyperns
Cyprus offshore company registration= Offshore – Firmenanmeldung Zyperns
Accountants in Cyprus= Buchhalter in Zypern
Company formation in Cyprus= Gesellschaftsgründung in Zypern
Auditors in Cyprus = Buchprüfer / Rechnungsprüfer in Zypern
Cyprus real estate investment= Immobilienanlage Zyperns
Tax in Cyprus= Steuer in Zypern
Cyprus trading companies= Handelsgesellschaft Zyperns
Cyprus holding companies= Dachgesellschaften Zyperns
Shipping companies in Cyprus= Reedereien in Zypern
Cyprus company registration= Firmenanmeldung Zyperns
Cyprus international Trusts= Internationale Trusts Zyperns
Cyprus international business company= Internationales Unternehmen Zyperns
Cyprus business advisors= Unternehmensberater Zyperns
Cyprus financing companies= Finanzunternehmen Zyperns
Cyprus corporate service providers= Firmendienstleister Zyperns
Corporate service providers in Cyprus= Firmendienstleister in Zypern
Cyprus tax consultants= Steuerberater Zyperns
Funds in Cyprus= (Fremd)Mittel / Gelder in Zypern Funds in Zypern
Real estate investment in Cyprus= Immobilienanlage in Zypern
Cyprus banking services= Bankdienstleistungen Zyperns
Cyprus tax advantages= steuerliche Vorteile Zyperns
Double tax treaties with Cyprus= Doppelbesteuerungsabkommen mit Zypern
Cyprus companies = Кипрские компании
Cyprus Tax= Налог Республики Кипр
Companies in Cyprus= Компании на Кипре
Cyprus lawyers= Кипрские юристы
Cyprus company formation= Создание компании на Кипре
Cyprus VAT= НДС на Кипре
Cyprus accountants= Кипрские бухгалтеры
Tax heavens= Налоговый рай
Cyprus auditors= Кипрские аудиторы
Cyprus funds= Кипрские фонды
Cyprus foundations= Кипрские учреждения
VAT in Cyprus= НДС на Кипре
Cyprus double tax treaties= Кипрские соглашения о двойном налогообложении
Cyprus Trusts= Кипрские трасты
Cyprus Shipping companies= Кипрские судоходные компании
Cyprus offshore company registration= регистрация оффшорной компании на Кипре
Accountants in Cyprus= Бухгалтеры на Кипре
Company formation in Cyprus= Создание компании на Кипре
Auditors in Cyprus = Аудиторы на Кипре
Cyprus real estate investment= Капиталовложение в недвижимость на Кипре
Tax in Cyprus= Налог на Кипре
Cyprus trading companies= Кипрские торговые компании
Cyprus holding companies= Кипрские холдинговые компании
Shipping companies in Cyprus= Судоходные компании на Кипре
Cyprus company registration= Регистрация кипрской компании
Cyprus international Trusts= Кипрские международные трасты
Cyprus international business company= Кипрские компании, занимающиеся международным бизнесом
Cyprus business advisors= Кипрские бизнес-консультанты
Cyprus financing companies= Кипрские финансовые компании
Cyprus corporate service providers= Кипрские поставщики корпоративных услуг
Corporate service providers in Cyprus= Поставщики корпоративных услуг на Кипре
Cyprus tax consultants= Консультанты по налогообложению на Кипре
Funds in Cyprus= Фонды на Кипре
Real estate investment in Cyprus= Капиталовложения в недвижимость на Кипре
Cyprus banking services= Банковские услуги на Кипре
Cyprus tax advantages= Налоговые выгоды на Кипре
Double tax treaties with Cyprus= Соглашения о двойном налогообложении с Кипром
The Cyprus Tax System
Tax For Individuals
An individual is tax resident in Cyprus if he physically present in Cyprus for an aggregate period exceeding 183 days in the tax year. Tax residents are liable to tax in Cyprus on their worldwide income whereas non-resident individuals are only liable to tax on income arising in Cyprus.
The tax rates are:
19.501-28.00020% 28.001-36.30025% 36.301 And over 30%
The following income is tax free:
- Profits from the disposal of shares and other securities
- Profits from a permanent establishment situated outside Cyprus of a Cypriot resident
Tax For International Business Companies
A company which is managed and controlled in Cyprus is considered tax resident in Cyprus and is liable to tax on income arising both from sources within and outside Cyprus. A company which is not tax resident in Cyprus is liable to tax on income arising from sources within Cyprus only. Cypriot tax residency is achieved, in practice, by either having a majority of Cypriot resident directors (local nominee directors) or by ensuring that the major decision-making is taking place in Cyprus or a combination of the two.
A uniform tax rate of 10% on net profits is applied to all companies either operating locally or internationally. The rate of 10% applies to net profits after deducting of all expenses incurred wholly and exclusively for the production of income.
The following income is tax free:
- Profits from the disposal of shares and other securities
- Profits from a permanent establishment situated outside Cyprus
There is no withholding tax on payments of dividends and interest to non-tax residents (individuals or companies). Thus dividends paid out of profits of the International Business Company to the non-resident ultimate beneficiaries / shareholders are paid gross without any withholding taxes.
Relief for taxes paid abroad is granted in the form of a tax credit against tax payable in Cyprus. The relief is given unilaterally irrespective of the existence of a double tax treaty.
Profits From Shipping Activities
The following are exempt from taxation in accordance with the provisions of the Merchant Shipping (Fess and Taxing Provisions) and are subject to tonnage tax:
- The income of a ship-owner of a Cyprus ship from the operation of such ship in any shipping activity between Cyprus and ports abroad or between ports abroad.
- The income of a company or individual from the provision of ship management services.
- Dividends paid to the shareholders of a ship owning company
- Dividends paid to the shareholders of a ship management company.
- Salaries and other benefits paid to the master, the officers and the crew of a Cyprus ship.
Capital Gains Tax
Capital Gains Tax at the rate of 20% is imposed on gains from the disposal of immovable property situated in Cyprus including shares of companies which own immovable property situated in Cyprus. However, gains by a Cyprus International Company on disposal of immovable property situated abroad, including shares of companies which own immovable property situated abroad are exempt from capital gains tax or any other Cyprus tax.
The following disposals of immovable property are exempt from capital gains tax:
- Gifts between spouses, parents and children and relatives up to third degree
- Gifts to a company whose shareholders are members of the donor’s family and continue to be members of the family for a period of not less than five years from the date of the gift
- Gifts by a family company to its shareholders, if the company has also acquired the property in question via donation and provided the property remains in the possession of the shareholder for at least three years.
- Gifts to charitable organizations or the Republic
- Exchange provided the gain is used for the acquisition of new property
- Transfer of ownership between spouses that their marriage has been dissolved by a court order
Value Added Tax (VAT)
Value Added Tax is imposed on the provision of goods and services in Cyprus as well as on the importation of goods into Cyprus.
Standard Rate 17%
Applies to any provision of goods and services in Cyprus not subject to the zero rates, the reduced rates or is exempt.
Reduced Rate 8%
Applies to transportation of passengers and their accompanying luggage within the Republic, movement of passengers in inland waters, all restaurant catering services, and accommodation in hotels and any other similar tourist lodgments.
Reduced Rate 5%
Applies to the supply of animals used for the preparation of food, books, newspapers and magazines, entry fees to theatres, circus, festivals, luna parks, concerts, museums, sports events and fees for using athletic centers, hairdressing services, renovation and repair of private households.
Furthermore, as from 10th January 2011 the reduced rate of 5% applies to supply of foodstuff, the supply of prepared or unprepared foodstuff and/or beverages (excluding alcoholic drinks, beer, wine and soft drinks), irrespective of whether the goods are delivered from the supplier to the customer or taken away by the customer, the supply of pharmaceutical products and vaccines that are used for health care.
Zero Rate 0%
Applies to the exportation of goods, supply, modification, repair, maintenance, chartering and hiring of sea-going vessels and aircrafts, transportation of passengers from the Republic to a place outside the Republic and viceversa.
Exempt supplies include rental of immovable property, financial services, hospital and medical services, insurance services, disposal of immovable property.
Obligation To Register For VAT
Every individual or company is obliged to register if:
- Taxable supplies are expected to exceed €15.600 per annum
- Provides services to a VAT registered company within the EU with nil registration threshold
- Offers distant sales with registration threshold of € 35.000
- Is involved in the acquisition of goods from other EU members states and relates to persons who offer exempt supplies of goods and services with registration threshold of €10.250
- Offers zero rated supplies of goods and services
International Business Companies who trade outside Cyprus in goods and services which would have been taxable for VAT purposes if they were provided within Cyprus have a right to Register in Cyprus and obtain a VAT registration number.
- Submission of quarterly VAT returns to the Vat Commissioner within 40 days of the tax period
- Intrastat return on a monthly basis of intra-community arrivals and departure of goods and services within 10 days of the month following the month of the intrastat return.
- Vies return on a monthly basis (recapitulative statement for supplies of goods and services) within 15 days of the month following the month of the Vies return.
Global Consultants offer and a full and comprehensive VAT service, to ensure absolute compliance with all rules, regulations and directives, and to maximize cash flow possibilities.