Tax Services

Tax compliance in Cyprus requires more than simply filing returns. It demands a precise understanding of a dynamic legal framework, strategic planning, and continuous coordination between accountants, legal professionals, and the Tax Department. At Vonturm, we provide integrated tax advisory and compliance services in Cyprus, helping both local and international clients manage their fiscal obligations with efficiency, foresight, and full regulatory adherence.

Comprehensive Corporate Tax Support

Our firm assists Cyprus-resident companies, branches, and foreign structures with the full spectrum of corporate income tax compliance. We prepare and file the TD4 corporate income tax return, calculate provisional and final tax payments, and ensure that all tax positions are documented in accordance with OECD guidelines and Cypriot Income Tax Law (118(I)/2002).

Key services include:

Preparation of annual tax returns (TD4) and IR7
Registration with the Tax Department and issuance of Tax Identification Numbers (TIN)
Calculation and timely payment of provisional taxes
Capital allowance claims and group loss relief
Application of double tax treaties (DTTs) and withholding tax exemptions
Guidance on tax residency and effective management requirements

We also advise on the proper classification of income (e.g. trading vs passive income), substance rules, and tax implications of restructuring, especially in the context of international holding and finance companies.

Personal Income Tax & High-Net-Worth Individuals (HNWI)

Cyprus offers a favourable tax regime for individuals, including non-domiciled status, zero taxation on dividends and interest, and low progressive income tax rates. We assist employees, directors, freelancers, and high-net-worth individuals with:

Personal income tax returns (TD1)
Tax residency certificates and 183-day / 60-day rule evaluations
Planning for non-domicile status and exemptions under SDC (Special Defence Contribution)
Social insurance and GESY contributions
Exit strategies and tax clearance upon departure from Cyprus

Our services are particularly relevant for expats, remote workers, and professionals under the Cyprus Digital Nomad Visa or relocation programs.

VAT & Indirect Taxes

VAT compliance in Cyprus is a critical area, especially for businesses engaging in intra-EU transactions or supplying digital services. We provide full support in:

VAT registration (obligatory and voluntary)
Preparation and filing of quarterly VAT returns (TD100)
VIES and Intrastat reporting
VAT treatment of cross-border transactions
Advising on place of supply rules, exemptions, and reverse charge mechanisms
Representation in VAT audits or refund claims

Our team ensures that your VAT strategy is aligned with both local legislation and the EU VAT Directive, minimizing exposure to penalties and avoiding operational delays.

Tax Investigations & Audit Support

We represent clients before the Cyprus Tax Department in the context of audits, clarifications, or disputes. Our lawyers and tax consultants work together to:

Prepare tax files, working papers, and reconciliations
Draft and submit responses to tax queries and objections
Assist in negotiating settlements and tax rulings
File appeals to the Tax Tribunal, if necessary

We ensure confidentiality, compliance, and alignment with the facts presented in your financial and corporate documentation.

International Tax Planning & Cross-Border Structuring

For groups operating across jurisdictions, we offer tax structuring services designed to ensure compliance with BEPS (Base Erosion and Profit Shifting) standards, economic substance rules, and EU directives such as ATAD. We assist with:

Structuring dividend, interest, and royalty flows
Transfer pricing analysis and documentation
Substance planning for Cyprus-based IP, holding, or finance companies
Exit tax and Controlled Foreign Company (CFC) considerations
Treaty analysis and permanent establishment assessments

Our approach balances tax optimization with legal robustness, aiming to prevent future challenges or reclassification by tax authorities.