Tax services have never been so important! Transparency and compliance are the single and only way out. The penalties for non-compliance are material and nobody can afford to be pointed out for hiding information. Moreover, bad publicity may be detrimental for a taxpayer. The market is sensitive and cautious to bad and negative publicity therefore all decisions need to be carefully addressed, justified and properly supported. The various requirements for disclosures in parallel with the sequence of reporting such as the DAC 6, will capture and put every single tax structuring plan under scrutiny by the authorities at its earliest possible stage. The game now is at the very top level at each country which shows how things are perceived important it is.Taking all the above seriously, we can help you ensure a bespoke balance between tax compliance and effective tax planning for your special circumstances.
Our direct tax team at Grant Thornton Cyprus can assist you for the following tax services:
Captures all stages from formation of the trading vehicle of preference to the reporting level. The demanding implementation stages can be smoothed out by proper planning at an early stage with synchronization of all fixed and variable factors. We can help you focus on your activities by focusing to our services providing a win/win position.
Personal Tax (compliance & advisory)
Mobility increases year by year due to our global and fast changing environment. This creates challenges and risks of handling correctly the taxes in each country. Having access to tax professionals in all countries world-wide, the target of compliance is not a headache. At the same time all opportunities for exploring any available grants/reliefs are communicated clearly from the beginning so nothing is missed out.
Tax Structuring & advisory
One-size-fits-all approach may not be the right solution. Special care is given to accommodate your needs and concerns including the time horizon of the investment and also the expected law changes affecting the structure. Planning is of paramount importance and that is why we spend time in the beginning to understand your needs and objectives providing solutions that can satisfy your targets.
Special Defence Contribution
it’s a legislation that applies to Cyprus tax residents (companies and individuals) and captures only 3 (three) types of income: Dividend/Interest/Rental, but reliefs and exemptions are also available including tax relief on withholding tax suffered abroad. An individual is subject to SDC ONLY when he/she is tax resident in Cyprus and at the same time domiciled in Cyprus.
Transfer Pricing Studies (TPS)
At the moment there is a legal obligation to carry out a TPS only on “back to back” financing arrangements. We are expecting changes in the law to capture other types of transactions soon. Our team with the support by our global network has the knowledge to provide you assistance at all levels.
Capital Gains Tax
Applies on profit arising from immovable properties situated in Cyprus or on disposal of shares of companies owning immovable property that is situated in Cyprus. Certain exemptions can be claimed based on circumstances of the seller.
Tax Due Diligence/Reports
Targets need to be examined thoroughly from a different angle. Any issues should be known in advance and should be taken into consideration to decide whether or not to proceed with the investment. Legislation may not be so clear therefore grey areas and risks need to be quantified and assessed specifically.
General Health System
It’s a fairly new system that was introduced in Cyprus as from March 2019. An obligatory contribution depending on status of the individual applies to employees/self-employed persons/pensioners/income earners and also to the employers, for salary income, rental income, dividend income, interest income and other income, with an annual cap of €180.000.