Social Insurance Contributions

Social insurance and other contributions are calculated at the following rates on employee’s gross weekly/monthly emoluments.

Limits

The following are the upper limits on employee’s gross emoluments:

Deadline for contribution payments

Value Added Tax

Imposition of tax

Value Added Tax is imposed on the supply of all goods and services in Cyprus, on the acquisition of goods from Member States and on the imposition of goods from third countries.

Rates

Standard rate                                                                                                 19%

Reduced rates                                                                                               9%/ 5%

Zero rates                                                                                                      0%

Standard rate

The standard rate applies to the supplies of all goods and services in Cyprus which are not subject to zero rate, the reduced rate or are not exempt.

Reduced rate 9%

Tourist, excursions, interurban bus services, transport of passengers by taxi, supply of food and drinks in a restaurant, catering services, sea transport.

Reduced rate 5%

Books, newspapers, non-bottled water, supply of food, hotel accommodation, rural and tourist buses, supply of medicines, hairdressing, renovation and repairs, entry fees to theaters,circus,festivals,luna parks,concerts,museums etc , acquisition or construction  of residence (subject to conditions)

Zero

Export sales (to countries outside of EU as from 01/05/2004) ship management services. Intra community supplies to EU V.A.T. registered persons.

Exempted

Rental of immovable property, hospital and medical caring services, Postal services, Insurance services, Educational services under certain conditions, financial services (with exceptions), disposal of immovable property where the application for building permission has been submitted prior to 1 May 2004.

Registration

Every individual or company is obliged to register if:

·  at the end of any month, the value of the taxable supplies recorded in the last 12 months exceeds €15.600 or

·  at any point in time the value of the taxable supplies are expected to exceed €15.600 in the next 30 days.

·  provides services to a VAT registered person within European Union with nil registration threshold

·  offers zero rated supplies of goods or services

·  acquires a company on a going concern basis.

·  a taxable person from abroad makes distance sales with registration threshold of €35.000

·  is involved in the acquisition of goods from other EU member states (relates to persons who offer exempt supplies of goods and services or are non for profit organisations) with registration threshold of €10.250

Intra-community trading of goods and services

Businesses that undertake intra-community trading, i.e. Acquisitions and sales of goods and supply of services from/to EU member states need to complete the following forms:

•  Intra-Community Acquisitions: (a)Intrastat-Arrival of goods, (b) Inclusion in the VAT return (on a total basis)

•  Intra-Community Supplies: (a) Intrastat-Departures of goods, (b) Recapitulative statement for supplies of goods and services (VIES form), (c)Inclusion in the VAT return on a total basis

INTRASTAT forms are submitted electronically only to the VAT authorities not later than the tenth (10) days from the end of the related month.

VAT returns

VAT returns are submitted quarterly and the payment of the VAT must be made by the 10th day of the second month that follows the month in which the tax period ends.

VAT  Penalties and interest

As from 24th March 2010, the Tonnage Tax System (TTS) was introduced with the Merchant Shipping (Fees & Taxing Provisions) Law 44(I) of 2010 with effect as from 1 January 2010.
The new TTS covers Maritime Transport activities offered in international shipping, namely Ship owning, Ship management (including Crew Management and/or Technical Manage­ment) and Chartering.

The tonnage tax for a qualifying ship owner and charterer is calculated on the net tonnage of a ship in accordance with the rates outlined in the table:

Note 1

The exemption also applies to bare boat charterer of a vessel flying the Cyprus flag under parallel registration.

Note 2

The law grants the exemption provided that the option to register for Tonnage Tax is exercised for all vessels and provided a composition requirement is met: at least 25% (reduced to 10% under conditions) of the net tonnage of the vessels owned or bare boat chartered in.

Note 3

In order to qualify shipmanagers must satisfy the below additional requirements:

·  Maintain a fully-fledged office In Cyprus with personnel sufficient in number and qualification

·  At least 51% of all onshore personnel must be community citizens

·  At least 2/3 pf the total tonnage under management must be managed within the community(any excess of 1/3 is taxed under the corporation tax)

Cyprus, by way of exception, grants citizenship to eligible applicants that make a certain investment into its local economy
Permanent Residence Permit (“PR”) in 90 days on the basis of regulation 6 (2):

Cyprus, by way of exception, grants citizenship to eligible applicants that make a certain investment into its local economy
Permanent Residence Permit (“PR”) in 90 days on the basis of regulation 6 (2):

PARTNERS

Petros Kalopetrides

Petros is the founder of P. Kalopetrides & Co. Nicosia, Larnaka, Limassol and Paphos .  Has long and wide experience in all functions of auditing of private and public companies of local and international businesses as well as in consulting, financing and investments.

Petros is a graduate of American Academy of Larnaka, Fellow of the Association of International Accountants as from 1967, and Authorised Accountant for Private and Public Companies by Institute of Certified Public Accountants of Cyprus (ICPAC).

Petros has extensive active involvement in social and business associations.

 

 

Adonis Kalopetrides

  Partner, FCCA

Adonis is a Partner in P. Kalopetrides & Co, as from 1992. Has long experience in audit/ assurance,  tax, and financial – business consulting of private and public companies of  local and international entities as well as listing companies to stock exchange. Adonis has a specialisation in Family Business Planning.

Following a completion of  Professional Diploma in Accountancy and ACCA in East London University, UK and practice as Audit Trainee in a high esteemed professional firm in London, Adonis returned in Cyprus as Auditor and then Partner in P. Kalopetrides & Co.

Adonis is a Fellow Member of the Chartered Association of Certified Accountants (FCCA) as from 1997, and Authorised Accountant for Private and Public Companies by Institute of Certified Public Accountants of Cyprus (ICPAC) as from 1992.

Our Staff

Our professional pool of staff include qualified and trainee accountants of high calibre who share our commitment to excellence and high ethical values

Individuals who are not tax residents of Cyprus are taxed on certain income accrued or derived from sources in Cyprus.
All Cyprus tax residents are taxed on all chargeable income accrued or derived from all sources in Cyprus and abroad.
A person is regarded to tax resident in Cyprus if he/she spends in Cyprus more than 183 days in any calendar year.