Tax

Tax Advisory

Logical analyse of a financial situation or plan from a tax perspective, to align financial goals with tax efficiency planning. The purpose of tax planning is to discover how to accomplish all of the other elements of a financial plan in the most tax-efficient manner possible. Tax planning thus allows the other elements of a financial plan to interact more effectively by minimizing tax liability.

Our fully qualified team is able to provide professional services to businesses as well as individuals. Our Tax specialists use their expertise to guide our clients on tax matters in Cyprus and internationally and develop personalized tax plans. We advise our corporate clients regarding Free Trade Zones, favourable tax regimes and help them implement their business strategy for a minimum tax liability.

Tax planning encompasses many different aspects, including the timing of both income and purchases and other expenditures, selection of investments and types of retirement plans , as well as filing status and common deductions. However, while tax planning is an important element in any financial plan, it is important to not let the "tax" tail wag the financial "dog." This can ultimately be counterproductive, as virtually all courses of financial action will have some tax consequences, and they should not be avoided solely on this basis.

Tax Structuring

One of the first and most important steps in any tax-planning process is the creation of effective financial and tax structuring that can withstand the scrutiny of taxing authorities and regulatory agencies.

Our company provide tax structuring services include:

  • Dealing with different tax system - Our staff with their global experience and knowledge provide services to our customers to reduce the tax impact of foreign operations with different tax system and revenue authorities
  • Obtain tax efficiencies - THP help its clients with overseas business or operations in a tax efficient manner to reduce its overall tax liability at a foreign subsidiary and group level

Value Added Taxes (VAT)

Our aim and priority is to provide to our clients services of the highest level of quality, always maintaining our professional and business ethics so as to enhance and add value to our services. The VAT aspects of transactions between companies within the European Union (EU) and other transactions involving EU companies are becoming more complex. Specialised VAT advice and guidance is therefore often indispensable.

Our VAT services include:

  • Assistance in registering companies for VAT in Cyprus or other EU member states - We may facilitate the registration or de-registration of businesses with the VAT Office in Cyprus or other EU member states, by assisting in completing and submitting the necessary applications and documents, and following up with the relevant authorities for obtaining the VAT number
  • Assistance in the completion and submission of VAT returns - We may assist in completing VAT returns in accordance with the applicable regulations and submitting the same with the relevant authoriti
  • Assistance in the preparation and submission of recapitulative statements (EC Sales Lists) - We may assist in completing recapitulative statements in accordance with the applicable regulations and submitting the same with the relevant authorities
  • Advising clients on VAT matters - We may provide advice on various VAT matters, including providing information on VAT registration, submission dates, VAT penalties, interpretation and treatment of transactions according to the VAT legislation, etc
  • Assistance in dealing with VAT investigations and enquiries - We may act as a liaison between our clients and the VAT authorities, and assist clients in complying with VAT investigations or receive information from the VAT authorities on various enquires

Tax Diary

End of each month Payment of special contribution for defence withheld on payments of dividends, interest or rents (when the tenant is a company, partnership, the state or local authority) made to Cyprus tax residents in the preceding month.

Payment of tax deducted from employees salary (PAYE) in the preceding month.

Payment of tax withheld in the preceding month on payments to non-Cyprus residents.
31 Jan Submission of declaration of deemed dividend distribution (IR623) for the year ended 31 December 2015.
31 Mar Electronic submission of the 2015 corporation tax return (IR4) for accounting periods ending on 31 December 2015 (IR4).

Electronic submission of the 2015 income tax return of physical persons preparing audited financial statements (if his/her turnover exceeds €70.000 annually).
30 Apr Payment of premium tax for life insurance companies - first instalment for 2017.
30 Jun Payment of special contribution for defence for the first six months of 2017 on rents if such tax is not withheld at source by tenant and on dividends or interest from sources outside Cyprus.

Payment of 2015 personal income tax under the self assessment method by individuals not preparing audited financial statements (if his/her turnover exceeds €70.000 annually).
31 Jul Submission of the 2017 provisional tax return and payment of the first instalment.

Electronic submission by employers of the total 2015 payroll (Form IR7).

Electronic submission of 2015 personal tax returns of individuals whose incomes do not include income from a trade/business, rents, dividends, interest, royalties nor income relating to trading goodwill.
1 Aug Payment of 2017 personal income tax under the self assessment method by individuals preparing audited financial statements (if his/her turnover exceeds €70.000 annually).

Payment of 2017 final corporation tax under the self-assessment method.
31 Aug Payment of premium tax for life insurance companies - second instalment for 2017.

Payment of immovable property tax for 2017 with a discount on the tax due.
30 Sep Electronic submission of 2015 personal tax returns of individuals not required to prepare audited financial statements but whose incomes include income from a trade/business, rents, dividends, interest, royalties or income relating to trading goodwill.

Payment of immovable property tax for 2017 without a discount on the tax due.
31 Dec Payment of premium tax for life insurance companies - third and last instalment for 2017.

Payment of provisional tax - second and last instalment for 2017.

Payment of special contribution for defence for the last six months of 2017 on rents if such tax is not withheld at source by tenant and on dividends or interest from sources outside Cyprus.