Category: Uncategorized

REMINDER | NEW Deadline Extension for the Submission of Personal Income Tax Returns and Payment of the Due Tax for the Year 2023

The Tax Department has announced an extension for the electronic submission deadline of personal income tax returns and related tax payments for the 2023 tax year.

On October 30, 2024, the Tax Department published an announcement on its website extending the deadline for submitting the 2023 personal income tax return (Form T.D.1) to November 30, 2024 for employees and pensioners with gross annual incomes exceeding €19,500.Self-assessment income taxes are also subject to this extension.

Similarly, self-employed individuals (Form T.D.1 self-employed) with an annual turnover below €70,000 who are not required to submit audited accounts now have until November 30, 2024, to file their 2023 income tax returns. This extension also covers the self-assessed payment of any income tax due.

If you need further clarification for the above Decree and/or assistance with the submission process, contact us via email on accounts@fairfaxyeaman.com or by calling +357 25558025.

Benefits of Setting Up a Business in Cyprus

Setting up a business in Cyprus offers numerous advantages, making it an attractive destination for entrepreneurs and investors. From favourable tax incentives to a strategic geographic location, Cyprus has established itself as a business hub in the Mediterranean. This article will explore the benefits of setting up a business in Cyprus, focusing on tax incentives and advantages, an overview of the process and requirements, and a comparison with other EU countries.

 

Tax Incentives and Advantages

Low Corporate Tax Rate

One of the most significant benefits of establishing a business in Cyprus is the low corporate tax rate. Cyprus boasts a corporate tax rate of 12.5%, one of the lowest in the European Union. This competitive rate allows businesses to retain more of their earnings, which can be reinvested for growth and development.

Double Tax Treaties

Cyprus has an extensive network of double tax treaties with over 60 countries. These treaties ensure that income earned in one country is not taxed again in another, thereby avoiding double taxation. This is particularly beneficial for businesses with international operations, as it minimises the tax burden on cross-border income.

Tax Exemptions and Deductions

Cyprus offers several tax exemptions and deductions, such as:

  • Exemption on Dividend Income – Dividends received by Cypriot tax residents are generally exempt from corporate tax.
  • Capital Gains Tax Exemption – Gains from the disposal of securities, including shares and bonds, are exempt from capital gains tax.
  • Notional Interest Deduction (NID) – Companies can deduct a notional interest on new equity injected into the business, reducing taxable income.

VAT Advantages

The Value Added Tax (VAT) rate in Cyprus is 19%, which is relatively low compared to other EU countries. Additionally, businesses engaged in international trade can benefit from VAT exemptions on exports.

 

Overview of the Process and Requirements

Company Formation

Choosing a Company Name – The name must be unique and approved by the Registrar of Companies.

Drafting the Memorandum and Articles of Association – These documents outline the company’s structure and operational guidelines.

Registration with the Registrar of Companies – Submit the necessary documents and registration fee.

Legal and Regulatory Requirements

Shareholders and Directors – A Cyprus company must have at least one shareholder and one director. Directors can be individuals or corporate entities.

Registered Office – Every company must have a registered office in Cyprus.

Company Secretary – Appointing a company secretary is mandatory.

Tax Registration

  • Tax Identification Number (TIN) – Obtain a TIN from the Tax Department.
  • VAT Registration – Register for VAT if the annual turnover exceeds €15,600 or if the business engages in intra-community trade.

Bank Account

Open a corporate bank account in Cyprus to facilitate financial transactions.

 

Comparison with Other EU Countries

Corporate Tax Rates

Cyprus offers one of the lowest corporate tax rates in the EU at 12.5%.
In comparison:

Ireland: 12.5%
Bulgaria: 10%
Germany: 30-33%
France: 26.5-27.5%
Croatia: 18%

Ease of Doing Business

Cyprus ranks favourably in terms of ease of doing business. The World Bank’s Doing Business Report highlights the straightforward procedures for starting a business, favourable tax policies, and efficient regulatory framework.

Double Tax Treaties

Cyprus’ extensive network of double tax treaties is comparable to other major EU countries, providing significant advantages for international business operations. Countries like the Netherlands and Luxembourg also have extensive treaty networks, but Cyprus combines this with a lower corporate tax rate and other fiscal benefits.

Geographic and Strategic Advantages

Cyprus’ strategic location at the crossroads of Europe, Asia, and Africa makes it an ideal base for businesses looking to operate in multiple regions. This is a unique advantage that is less prominent in other EU countries.

Setting up a business in Cyprus presents numerous benefits, particularly in terms of tax incentives, a straightforward setup process, and strategic advantages. The low corporate tax rate, extensive double tax treaties, and various exemptions make Cyprus a highly attractive destination for entrepreneurs and investors. When compared to other EU countries, Cyprus stands out with its favourable business environment and strategic location, making it a prime choice for business establishment and growth.

 

FairFax’s team can assist you with your company’s accounting and corporate management needs.

Browse through our website to find out more about the services we offer.

REMINDER | Extension to the Deadline for the Submission of Personal Income Tax Returns and Payment of the Due Tax for the Year 2023

Fairfax would like to remind you that according to the Minister Council Decree (ΚΔΠ 209/2024), dated 21/06/2024, the deadline for the online tax return submission for the tax year 2023 is extended. This applies to employees, pensioners, and self-employed individuals, as well as for the payment of the due tax.
For individuals other than self-employed and self-employed who are not required to prepare audited accounts, the deadline for submitting the tax return for the tax year 2023 is extended until 31st October 2024. The deadline for the payment of the tax due is also extended until 31st October 2024.
If you need further clarification for the above Decree and/or assistance with the submission process, contact us via email on accounts@fairfaxyeaman.com or by calling +357 25558025.

Income Tax Declaration for the year 2023

How do I submit my Income Tax Return? When am I able to submit the declaration? Are there any reasons I could be exempt from submitting income tax declarations? Read below information provided by the Fairfax team to understand how and why you should submit your Income Tax Declaration for the year 2023.

Taxisnet Portal

You can submit your Income Tax Declaration electronically through the Taxisnet System. The System is available in both Greek and English and can be accessed here.

When can I Submit the declaration?

The Fairfax team would like to inform you that the Income Tax Return for individuals for the tax year 2023, is now available on the Taxisnet System and the submission deadline and the payment of any due tax is the 31st of July 2024.

Who needs to complete the submission?

According to the Minister Council Decree ΚΔΠ 184/20223, individuals (Employees, Pensioners and Self-employed persons) with any annual income above €19,500 is required to submit personal income tax return.

Delayed Submission or Non-submission

Late submission of return will result to a penalty of €100.

As always, the Fairfax team is available to assist with the submission process or any other tax issues you may have on  accounts@fairfaxyeaman.com or by calling +357 25558025.

Important Reminder | Employer’s Annual Tax Declaration (Form TD7) Submission Deadline

Fairfax would like to remind all employers that the deadline for submitting the Employer’s Annual Tax Declaration (Form TD7) for the year 2023 is on the 31st of May 2024. Ensuring timely submission is crucial to avoid any penalties.

 

Key Points to Remember

 

Submission Deadline:

  • The final date to submit Form TD7 for the year 2023 is May 31, 2024.

Penalties for Non-Compliance:

  • Employers who fail to submit the relevant tax declaration by the deadline will incur a penalty of €100. This fine is imposed to encourage timely compliance.

Valid Tax Identification Codes (TIC):

  • The Employer’s Tax Declaration cannot be processed unless all employees listed on the form have valid Cyprus tax identification codes. Ensure that all employees’ details are up-to-date and correct to avoid delays or rejections.

 

It is essential for employers to make the appropriate preparations in advance to meet this critical deadline. Ensuring all employees have valid TICs and gathering the necessary information for Form TD7 submission will help in avoiding last-minute issues and penalties.

Fairfax is here to assist you with any questions or concerns you may have regarding the submission process. Don’t hesitate to reach out to us for further clarification or support. Compliance with tax regulations is vital for smooth business operations, and we are committed to helping you meet all necessary requirements.

For further information speak to our team of specialists regarding your outsourcing of payroll, bookkeeping and accounting needs. Call today on +357 2555 8025 or email accounts@fairfaxyeamen.com

How can we help?

For an initial discussion please call +357 25558025

CONTACT US