In an effort to strengthen the transparency of the Cyprus legal and tax systems in compliance with EU and OECD standards Cyprus Tax Authorities have introduced new criteria for the determination of whether a Cyprus Company maintains its management and control in Cyprus and satisfies the requirements of substance.
This is an increasingly important issue as Cyprus companies face challenges from Foreign Tax Authorities.
So how to prove substance:
1. The majority of Directors are resident in Cyprus.
2. The Company maintains its own headquarters in Cyprus.
3. There is a real economic Substance behind the Company in Cyprus.
4. The Company has its own employees in Cyprus. These employees must be registered with social insurance and are substantially involved in the operations of the Company.
5. The Directors of the Company are qualified professionals.
6. The Company maintains a website with proper email address
7. The Company has its own telephone, fax and internet lines.
8. One of the bank accounts of the Company must be held with a Cypriot Bank Institution with a local resident as a signatory.
9. All accounting records must be kept in Cyprus
10. Annual audit must take place by local Auditors registered with the Institute of Certified Public Accountants of Cyprus (ICPAC).
11. Employees and premises must be insured.
The above of course is not an exhaustive list and the circumstances of each case differ. At J. Zenonos Law firm we can provide you with a comprehensive plan that suits your particular situation and requirements. Some of the services we can provide are:
1. Specialist legal and tax advice,
2. Management and Administration Services,
3. Office rental,
4. Supply of staff and payroll services,
5. Dedicated phone and fax line,
6. Email set up and hosting,
7. Creation of corporate website, and
8. Insurance services
For more information please contact us