Tax Tips for Cyprus Company Owners

COMPANY OWNERS

Tax Free Expenditure 

• Donations to approved charities (with receipts)
• Employer’s contributions to social insurance and approved funds on employees’ salaries
• Expenditure incurred for the acquisition of shares in an innovative business (new measure)
• Overseas permanent establishment profits abroad under certain conditions
• Telephone expenditure (landline and mobile) incurred for business use
• Commercial vehicles expenditure and their repairs

Entertainment expenses

The lower of €17.086 or 1% of the gross income of the business.

Employees

Payments to employees for which social insurances have not been paid are not allowable for tax purposes.

Casual Labour

Is always scrutinized by the Income Tax Office.

Collection of Expense Invoices

Expense invoices incurred for business purposes reduce your Corporation Tax payable.

Deemed Dividend Tax

Don’t forget that at the year-end profitable companies have to pay corporation tax & deemed dividend tax.

Bad Debts

VAT paid on bad debts can be recovered

Netting Off Taxes

Don’t forget that you can net off VAT obligations and Corporation Tax refundable against each other and vice versa. 

Directors of Company

Are personally liable to the VAT authorities for any VAT discrepancies of the company.