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Year end checklist – TAX- VAT Planning can definetely be a holiday wish this season

 

Tax and VAT in Cyprus are always changing and this year specifically it’s more important than ever for Cyprus Companies to better plan their taxes. Tax planning can be done for both Companies and Individuals and this determines how the company will step foot in the new year. Proper tax planning and corrective actions means that Cyprus companies will be well prepared and save money on their 2019 tax year.

 

This December,  D Marinou & CO Ltd  prepared 6 questions for Cyprus companies to consider for their tax returns for 2019 and beyond.

 

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2018 Year End checklist for tax returns

 

✔ Do you split between business and private expenses in order to avoid taxes on Debit balances?

✔Does the business have profits so you will receive dividends and pay only 17% withholding tax (only for Cy tax residents)?

✔ Do you claim VAT only on business expenses and only with the appropriate invoices/receipts?

✔ Have you structured the appropriate split between salary and dividends so you pay minimum income tax?

✔ Have you paid the second installment of temporary tax for 2018 therefore avoid the 10% penalty on unpaid tax next year?

✔ Have you paid a one-off bonus to your staff this year? Payments of one-off bonuses are not subject to Social Insurance contributions.

 

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Season’s greetings and warm wishes for a happy new year