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Which Company Helps in Submission of Annual Returns in Cyprus

  • Every year, many foreign companies set up shops in Cyprus that offer services, but very few of them help prepare and submit tax returns. Moreover, very few of them take the trouble to learn the relevant tax laws of Cyprus and the requirements of using their services. Instead, when they open a business in Cyprus, they tend to try to take advantage of the general incompetence of the authorities in charge of tax. It's why the preparation of tax returns by these companies can sometimes be a bit problematic.

    When a company sets up shop in Cyprus, it wants to do two things. The first is that it wants to attract clients from within Cyprus interested in doing business with it. Secondly, it wants to maximize its tax contributions to the government. Both of these objectives can be achieved if the company adequately prepares its tax returns.

    There are two basic things that a company should remember in preparing its tax payments in Cyprus. First, all profits should be exempt from tax. Even if the company cannot generate any profit, it must pay tax on all its taxable profits. It means that it will have to pay taxes on its profits from selling products or trading in currencies. A second thing that it must do is to calculate the tax due on its revenues. That is, it must know its taxable income before calculating its tax payments.

    When a company operates in Cyprus, it has to register itself in the country. It requires the submission of an application to the tax office of Cyprus.  It's done by the company's representative, who is called a CPA. After applying, the company's representative will visit the tax office and make the necessary submissions to the concerned authority.

    To calculate the tax payments required by the authorities, the company's CPA will make detailed submissions on the previous year's income statement and the balance sheet. He will also submit relevant documents on the nature of his company's trade or business. The company representative will also visit the tax office regularly so that he can keep informed about the tax payments being imposed on his company. His job is to make sure that all the tax payments being demanded are met.

    A company that is involved in tax payment must also have its in-house accounting department. This department will prepare the tax payments that the company needs to make. If a company needs assistance in preparing its accounts, it can turn to tax consultant experts in this field. These consultants are generally a part of a larger company and work for it. However, they too need to be paid their due.

    When companies prepare their accounts and submit them to the concerned authority, they have to follow specific rules and regulations. For instance, the company cannot hire any new staff for two years. Apart from this, the company's accountant cannot hire anyone for one year or more. In addition, several other accounting and tax-related procedures have to be followed.

    However, most of these procedures are not difficult for a company that is not a very big one. Nevertheless, a company needs to comply with the tax laws of Cyprus regardless of its size. To do this, a company needs assistance from an accounting firm. The firm will help the company to prepare accounts and submit them to the concerned authority. Only a well-established accounting firm should be chosen for this purpose.

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