Cyprus-Forum.com

[kanabus]

Hi to Everybody,

Well I am writing to you because I am looking for some answers to my questions and perhaps somebody will help me.

The situation looks like that: I have a permanent contract as an IT. It is very good job but I have also some additional customers on my own. The problem is that I have to start a company under a business name in order to be able to write invoices. I know little bit about opening a company in Cyprus. I decided to open the simplest one; it is not even limited one. The problem is that I do not know anything about clearing, settling of accounts or paying taxes. If you run a business how often you should pay taxes? Is it once a year? How about incomes from current job? Should I settle everything at once in tax office? How about expenses? If I have incomes and expenses due to the fact that I run a business how I settle them together? Actually what is an expense? Well the problem is that I cannot find any information at government’s sites. Have anyone experience and want to help me? I will be very glad.

Thank you in advance.
RK>

[andri_cy]

I would think it works the same as over here or similar so I will tell you what should happen. You can pay taxes monthly or quarterly. If you also have an other job, at the end of the year when you file your taxes like you do every year, you need to claim the incomes from both sources. You can claim expenses you have from the company you are owner of such as gas mileage, dinner expenses, hotel accommodations, IF you have receipts to prove that it was spent. Now, Cyprus could be a far cry from the US, but hey...

[Niki]

We will be creating a new company when we get there with the help of www.auditchart.com who were recommended to us. They are also aware of UK laws so it is ideal for us as we will be working for UK clients as well as Cypriot cusomers.

Niki

[kanabus]

Thanks for all clues.
How about VAT tax then? Let say I want to buy a new Laptop or another stuff I need in the office. Am I going to get the VAT back at the end of the day? Let say I want to import some equipment, I know from my experience that there is no duty or VAT when you import or export let say computer stuff. I mean at least in EU. Am I allowed to do that without having limited company? I know that limited company must have full accountants. At this stage I want to avoid that because it is expensive. Accountants going to cost me annually lots of money so that is why I am opening a company under a business name only. I know that it has disadvantage because I am responsible for all my debits and credits and if something goes wrong I will potentially lose all of my properties. On the other hand I just do general IT services and it is not something big. I just want to be legal. That is it.

If anyone can give me additional clues I’ll be grateful.

Well I have lots of questions and I think I should visit a lawyer first.

Thank you in advance.

[MarsdenCuckoo]

Only a suggestion.... why not visit your local tax office and ask them for their advice? We found the people at the Larnaca office very helpful; hopefully you'll find the same in Nicosia.

Good luck.

Christine