Cyco tax obligations

A Cyprus company is subject to certain tax obligations under the Cyprus tax law. These include:

Corporate Income Tax

Cyprus companies are subject to corporate income tax on their worldwide income, with a rate of 12.5%.

Value Added Tax (VAT)

Cyprus companies that are registered for VAT must charge VAT on their supplies of goods and services and submit periodic VAT returns. The standard VAT rate in Cyprus is 19%

Withholding Tax

Cyprus companies must deduct withholding tax from payments made to non-resident individuals and companies for certain types of income such as dividends, interest and royalties.

Transfer Pricing

Cyprus companies must ensure that all related-party transactions are conducted on an arm’s-length basis and that documentation is kept to support the pricing of such transactions.

Tax returns

Cyprus companies must file annual tax returns within specific deadlines.

Tax payments

Cyprus companies must pay corporate income tax and VAT on a regular basis, usually on a quarterly basis.

Double Taxation Agreements

Cyprus has signed double taxation agreements with several countries to avoid double taxation of income earned by residents of those countries. Cyprus companies that conduct business with residents of these countries must ensure compliance with these agreements.

It is important

It is important to note that this list is not exhaustive and the company should seek legal and financial advice to ensure compliance with all relevant tax laws and regulations.

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