ARTICLE
25 April 2023

Cyprus Self Employed Person - Quick Summary

CA
CYAUSE Audit Services Ltd

Contributor

CYAUSE Audit Services Ltd was formed in 2011 in Nicosia, Cyprus by Mr Kyriakos Tramountanellis. CYAUSE Audit Services Ltd managed to provide continuously a full spectrum of services to its international and local clientele, from offshore and onshore incorporation and licensing of investment firms to accounting, audit and tax services to local and international entities and groups.
Cyprus Self Employed Person - Quick Summary
Cyprus Tax

SELF EMPLOYED PERSONS

Characteristics

  • Are taxed on profits, not turnover
  • Expenses incurred for the running of the business are tax allowable (deducted for tax purposes)
  • Are taxed on the PAYE tax brackets of the employed persons
  • When their turnover exceeds Euro 70,000 annually, audited financial statements must be prepared just like companies
  • Must be VAT registered and follow VAT rules and regulations
  • Can register as employers and be responsible personally for their staff payroll taxes, just like companies 
  • Are frequently scrutinized by the VAT and Income Tax offices (more often than companies)
  • Are personally liable to VAT and Income Tax offices (unlike companies)

Our Advice

  • The legal framework should outweigh the minor tax benefits when deciding whether to incorporate a company.
  • Avoid been a self-employed person with employees.
  • Always consult with an expert before you make any decision

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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