Cyprus CT & VAT Rates 2018-10-17T13:05:46+00:00

Cyprus CT & VAT Rates

THE SCF GROUP HAS BEEN FORMING AND MANAGING CYPRIOT COMPANIES FOR OVER 25 YEARS FROM ITS LONDON OFFICES

CYPRUS

CORPORATE & VAT RATES 2018

TAXATION OF CYPRIOT COMPANIES

The Cypriot tax system has been specifically developed to make it an attractive location for trading but especially holding and investment activities. In addition, Cyprus has very attractive tax laws and registration facilities for shipping.

BASIC FACTS: In synopsis, the corporate tax rate in Cyprus is as follows:

STANDARD COMPANY RATE OF TAX

12.5% Corporate Tax

CAPITAL GAINS TAX

Cyprus employs a territorial capital gains tax system where-by CGT will only apply to immoveable Cypriot assets such as property whether directly or indirectly owned. Where this is not the case, profits from the disposal of shares, bonds, debentures, founders’ shares, and other titles of companies or other legal persons incorporated in Cyprus or abroad and options thereon are unconditionally exempt from corporate tax/CGT.

DIVIDENDS

Dividends earned from foreign investments by a Cypriot company are exempt from corporate tax save where it is stipulated in a tax treaty that dividends are deductible for tax purposes for the paying company. In Cyprus Dividends received from another Cyprus tax resident company are exempt from all taxes, subject to certain anti-avoidance provisions.

ROYALTY INCOME

Royalty income is taxed, after deducting allowable expenses, at the corporate tax rate of 12.5%.

VALUE ADDED TAX (Variable Rates)

In simple terms, VAT is a tax levied upon consumer expenditure. It does not, at least for VAT registered undertakings; apply to transactions carried out in the course of business. However, to ensure the extraction of the tax, all suppliers of applicable goods and/or services must charge VAT which can then be reclaimed by the receiving VAT registered entity. If further sales are made, then the process is simply extrapolated until, if appropriate, an end consumer is found. Please note that as in other EU countries, VAT need not be charged where another company is also within the EU and also has a VAT number.

The Main Cypriot VAT rate is 19%

For more information on Cypriot Company Formation services, please speak to a tax planning consultant

PRIORITY ENQUIRY FORM

(Strictly Confidential No Obligation)

SCF International is the trading name of SCF Corporate Services Limited

Address: 1st Apriliou 47, Limassol, 3117 Cyprus

Telephone: +357 25 771 570   Email : enquiries@scfgroup.com

Registration number HE 341030

Malaysia: KL Marketing Office, B-7-6, Megan Avenue II, Jalan Yap Kwan Seng, 50450 Kuala Lumpur, Malaysia

© SCF INTERNATIONAL 2018

A FULL RANGE OF LEGAL, ACCOUNTANCY & COMPANY MANAGEMENT SERVICES

The SCF International specializes in providing accountancy services for Cypriot limited companies, Cypriot company management services including the provision of (where necessary) domestic directors, domestic company secretaries, registered office address services, trading offices, value added tax (VAT) registration and management, payroll (Pay as You Earn PAYE), opening up and managing bank account facilities, raising invoices and any and/or all other services required to establish a bone fide managed and controlled UK limited liability company.

The SCF International also specializes in providing accountancy services for Irish limited companies, Irish company management services including the provision of (where necessary) domestic directors, domestic company secretaries, registered office address services, trading offices, value added tax (VAT) registration and management, payroll (Pay as You Earn PAYE), opening up and managing Irish bank account facilities, raising Irish invoices and any and/or all other services required to establish a bone fide managed and controlled Irish limited liability company.

Our in-house team of legally and accountancy qualified experts can also provide advice on current UK & Irish tax laws/provisions including anti-avoidance provisions, EU directives and regulations, the impact of BREXIT for both UK and EU based businesses and other relevant. In addition, where required the SCF Group can also set-up and arrange the management of companies in tax attractive EU based jurisdictions such as Cyprus, Luxembourg or Malta or indeed any jurisdiction in the world including those in the Middle and Far East.

Property de-enveloping services – In conjunction with leading UK firms of solicitors SCF International can help transfer companies currently held by what were known as ‘offshore’ companies into either more tax efficient UK companies or directly back into the names of individual beneficial owners’ often without attracting stamp duty land tax (SDLT) but still avoiding the advance tax on enveloped dwellings (ATED). For more information please see http://www.de-enveloping.co.uk

Our fiscal migration and tax planning department is operated by qualified lawyers and accountants and can advise both domiciled and non-domiciled individuals on how to mitigate their individual and corporate tax exposure be it in Cyprus or internationally. Our legal & business department can provide specialized advice on all domestic and international tax planning issues but also upon ‘key’ issues such as asset protection be it in the form of trusts, private interest foundations (PIF’s), pre-nuptial and post-nuptial agreements, divorce and general family law, legal drafting, leave to remove applications etc