Changes to both the democratic and economic infrastructure have created excellent global business opportunities or all types of business sectors.
Many individuals have been lured away to search for greater rewards but have suffered financial loss due to very poor tax planning that been implemented from the outset.
You may also be required to submit an SA100 and maybe entrapped in a double taxation treaty. Allow us compute and clarify your liabilities.
Non-UK Resident Company Operations
With careful planning you can trade within the UK and may be eligible to a tax free exemption subject to fulfilling certain legal requirements. However if the entity is registered as a Cypriot resident company, current legislation permit the shareholder to purchase and dispose shares and suffer a zero rate of tax should any transactions crystallise a capital gain, subject to certain criteria.
If you are in the luxury position of residing outside the United Kingdom and receive income from within the UK, you may still be subject to UK tax. Careful tax planning may increase your revenue, therefore please speak to us for any advice and any issues that concern you.
Moving Overseas Permanently
If you decide to move overseas for pastures new, speak to us first before disposing of any business / non business assets as you may still be liable to capital gains or income tax. Additionally you may be entitled to a tax refund, allow us the opportunity to guide you along the right path more.
A UK / Non UK entity may branch out into overseas trading / manufacturing or by forming a permanent overseas entity, even using an agent, franchising and may result in having to comply with local legislation and be party to double taxation, legal constraints, currency exchange, employment law and more. We can plan along side you to ensure you maximise your returns and work within the parameters of local law.
Forming a limited company in Cyprus
We would also like to inform you that we have the facilities in place to form limited companies in Cyprus and will also guide you throughout your period of trade more.
Cyprus – Auditing your Company
Our core audit and assurance services include statutory audits, internal audits and due diligence investigations into potential business acquisitions.
As External Auditors our prime responsibility is to form an independent opinion on the financial statements which comply with local legislations and which have been prepared in accordance with International Financial Reporting Standards. Our audits are conducted in accordance with International Standards on Auditing and tailored to the size of your company..
We view our role in the financial reporting process as an opportunity to provide constructive recommendations on financial processes, key controls and performance indicators.
Cyprus – Taxation
On becoming a permanent resident of Cyprus, you should notify the local income tax authorities to enrol as a Cypriot taxpayer.
Any individual that resides in Cyprus for more than 183 days during the financial year is required to pay tax on any income generated within Cyprus or from overseas. Currently there are two tax schemes in operation, one for the employed and the other for the retired.
Retired persons benefit from favourable tax rates, with a ceiling of 5% on any income of €3,419 or above. In order to comply for this, retired people are unable to undertake any paid employment. Tax band rates for working taxpayers are more.
Cyprus and Double Taxation Agreements with many Countries, Including the UK
No income tax is payable in Cyprus on other sources of income, including bank interest and dividends from shares, although they do incur a Cyprus Defence Levy tax of between 10% and 15% depending on the type of income more.
Dividend Tax in Cyprus
Dividend tax depends on whether the income is received by a corporate shareholder or an individual. Since Jan. 1, 2003, dividends have not been taxed in Cyprus, unless they are received by a Cypriot tax resident individual. Payments of dividends to non-residents, whether corporate shareholder or individual, are not taxed.
Note that, for tax purposes, a company is deemed a resident company if it is managed and controlled in Cyprus. A person is considered a resident if they have lived in Cyprus for more than 183 days in the same tax year.
Cyprus holding companies have a major advantage in regards to the fact that there aren’t any withholding taxes on dividends received from other Cyprus resident companies, or by a permanent Cyprus establishment belonging to a non-resident company. The only exceptions where these cases don’t apply are as follows:
- More than half of the paying companies income are from investments.
- The foreign tax on the subsidiary is much lower than Cyprus’s tax.
In most cases, dividends sent from an EU country, and received by a domestic shareholder, are free from withholding tax. However, if dividends are received from a non-EU country, the rate of the withholding tax will depend on whether or not there is a double taxation treaty between Cyprus and the payee’s country of residence. If there isn’t a double tax treaty, the domestic rate from the payee’s country applies.
Deemed Dividend Distribution
Deemed dividend distribution applies only to companies that have Cyprus tax resident shareholders, who are either physical or legal persons. These provisions don’t apply if a shareholder of a Cyprus company is a Cyprus tax resident, who is also acting as a nominee shareholder and holding shares for foreign persons. Deemed dividend distribution affects international investors only when a Cyprus tax resident company holds another Cyprus tax resident company. Deemed dividend distributions that aren’t exempt are subject to a 15% special contribution tax.
Capital Gains Tax of 20% is payable on the sale of immovable property in Cyprus. No capital gains tax is payable on gains from investments subject to certain criteria.
Inheritance tax is currently abolished in Cyprus.
JT Accountants take every care in making their recommendations and offering advice, any contract is bound between the selected accountant and the client. JT Accountants cannot be held liable for any failure on the part of either of the parties concerned. JT Accountants is a trading name of JT Accountants Limited Company No. 06554865. Registered in England and Wales. Registered Office Flat 1, Sir Matt Busby Way, Old Trafford, Manchester, M16 0QG.