Tax Advisory & Compliance Provider
Ioannou Theodoulou Ltd
Founded in the early 1990’s, ITH has grown substantially over the years providing dedicated and personalised professional guidance and advice to clients on all their tax, accounting, business and financial affairs.
With focused and centred understanding of each client’s needs in relation to audit & assurance, tax and business & financial advisory ,the team at ITH has the professionalism and expertise to provide the right advice and get the task done.
Tax Advisory & Compliance
With its tax system being fully compliant with the requirements of the European Union (EU) and the OECD many expats will consider establishing and operating a business in Cyprus.
It is therefore important that such expats have a basic understanding of business taxes in Cyprus.
Cyprus has one of the most competitive corporate tax rates in the EU, being 12.5%
All companies that are tax residents of Cyprus are taxed on income earned from all sources, both in Cyprus and abroad. A company which is not a tax resident of Cyprus is only taxed on income earnt from business activity that is carried out through a permanent establishment in Cyprus and on certain other income arising from sources in Cyprus.
A company is a Cypriot tax resident if it is managed and controlled from Cyprus.
The types of incomes for which corporate taxation in Cyprus applies are:
- profit from the sale of securities;
- profits of a permanent establishment abroad (under special conditions);
- interest not arising from the ordinary activities of the company.
Special Defence Contributions (SDC) are also imposed on non-exempt dividend income, “passive “ interest income and rental income earned by tax residents of Cyprus . Non tax residents of Cyprus are exempt from the SDC.
Dividends are generally exempt from SDC, subject to certain exceptions.
Interest received from collective investment schemes are not subject to SDC as this is regarded as “active “ interest income.
An expat seeking to establish and operate a business in Cyprus will benefit from the professional and specialist expertise and advice of a qualified tax specialist in Cyprus. Our Eteam member is a highly regarded firm of accountants and tax advisors in Cyprus and will be able to guide and assist an expat planning to set up a business in Cyprus.