What is the Tax system in Cyprus and how it works?
Every company is obliged to prepare by August 1st, the provisional income and tax declaration. This means that the company must calculate the approximate profit for the financial year which in most cases ends 31st of December , declare the approximate income on which the company must calculate the the approximate income tax (4.25% for companies registered and worked before January the 1st 2002 or 10% for companies registered after that period). The total sum of the calculated tax must be divided in 3 equal installments which must be paid to tax revenue the 1st of August, 30st of September and 31st of December. Final Tax report must be given till august 1st next year. Our accountants form this report, based on bank statements of the company. This report must be checked and sign by a licensed local auditor, who confirms that the report is formed according the companies Act and presents the true and fare financial status of the company. After this procedure , the tax is calculated on the
