Accountancy & Tax

Tax is only one of many needs. We understand the fast changing requirements of today’s world and we adapt, develop and structure the tax planning to our clients’ needs. Our approach is proactive and innovative and team supports clients with a full range of tax services with care and confidentiality.

Our business tax advisory service is comprehensive, offering services which include:

• Corporate and tax structuring of a business in Malta and Cyprus
• Corporate and tax structuring internationally
• Re-domiciliation of a company to or form Malta and Cyprus
• Restructuring, mergers and acquisitions
• The direct and indirect Malta and Cyprus tax implications of any proposed transaction or set of transactions
• The Malta fiscal aspects of trusts and foundations
• Estate planning
• Taking up residence in Malta or Cyprus
• Tax compliance services
• Tax credit incentive applications
• MicroInvest scheme applications

Compliant tax planning works to support tax regulations and obligations as closely as possible with a business’s strategic vision. In doing so, it helps minimize tax liability and increase the resources available to grow the business.

The tax compliance services we offer include:

• Compliance checks across all taxes, statutory accounting and tax reporting
• Coordination of tax compliance activities such as direct and indirect taxes, tax accounting, preparation of statutory financial statements
• Reporting and advisory on diverse accounting practices, legislative environments, tax and business customs
• Support in audits, and practical knowledge of current and emerging regulatory requirements

Basis of taxation in Cyprus

Cyprus is well established as a favorable jurisdiction in Europe for business structuring and international tax planning. By ensuring proper long-term oriented tax planning and structuring are optimized of the Cyprus Company in the International Tax plan is in place that will provide tax optimization and thus having a return on investment. Cyprus has a distinctive combination of advantages including a unique location, solid legislation and strong professional environment. These factors and more have resulted in Cyprus becoming one of the most attractive countries for the incorporation of International Business Companies (IBCs) in Europe over the last decade.

Management and Control

Principally, all Cyprus Tax Resident companies are taxed on the worldwide income accrued or derived from sources in Cyprus and abroad. A company is considered as a Resident Cyprus company if it is managed and controlled in Cyprus. There is no actual definition on the term “managed and controlled” according to Cypriot legislation. However, the tax authorities in Cyprus consider a company to be managed and controlled in Cyprus if all the below criteria coexist:

1. Majority of directors reside in Cyprus
2. Board meetings are held in Cyprus
3. Strategical decisions are made in Cyprus

Corporate tax

The Corporation Tax in Cyprus is 12.5% which is uniform and it applies on trading profits, making it one of the lowest in Europe.
Moreover, Cyprus companies have some exemptions that can further reduce a company’s tax bill on income that is not taxable in Cyprus, for example:

• Profits from the sale of securities/ shares is exempted
• Dividends received from abroad are exempt (subject to criteria)
• Interest not arising from the ordinary activities of the company is exempted
• Profit from a permanent establishment abroad is exempt
• Capital gains from sale of immovable property situated outside Cyprus is exempt

Taxable losses

If a company incurs a loss during a tax year, then this loss can be carried forward and used for tax relief of next year’s profit. Similarly, in case the company does not make profit then it can utilize the accumulated losses against the first available profits. The offset against the profit must arise during the next 5 years that the losses were created, otherwise this carry forward opportunity will be lost.

In case of Group of Companies, the losses that arise in a company can be utilized to reduce the profit of another company within the same Group of companies. A Group of companies is considered a Holding Company and its subsidiaries whereby the Holdings company holds at least 75% of the subsidiary directly or indirectly among companies of the same group for the whole year. Losses that are brought forward cannot be utilized for Group relief, since a Group can only utilize the current losses.

A company is also considered to be a member of a group if it is at least 75% a subsidiary of the other companies are at least 75% subsidiaries of a third country.

EU Directives

Cyprus having EU membership, and therefore use of EU Directives is also allows benefits to other Third countries. Application of some key EU directives are as follows:

1. Parent / Subsidiary Directive – Withholding tax is not paid on dividends and has immediate effect as long as there is 10% minimum shareholding and 2 years of holding. The tax is withheld abroad and the dividend is exempt in Cyprus (subject to conditions)

2. Interest / Royalty Directives – Withholding tax is not paid on the interest to Non–Residents and has immediate effect provided there is 25% minimum shareholding (only in case of royalties) Royalties are subject to corporation tax.

3. Merger Directives –Resident and Non-Resident Companies have no taxation obstacles or consequences relating to reorganization, mergers, divisions, transfer of assets and exchange of shares.

To discuss whether a Cyprus company is appropriate for your business, please feel free to contact us or read more details in our Cyprus Registration section.

White November developed expertise in assisting companies with the right VAT treatment of any transactions undertaken. We provide End-to-end VAT compliance service solutions from VAT registration to VAT de-registration, including VAT representation during local VAT audits.

• VAT registrations
• Preparation and submission of VAT returns
• Submission of VAT recapitulative declarations
• Liaison with the VAT department
• Advice on cross border supplies, bonded supplies and importation of goods into the EU

Business effective decision making needs systematic analysis. We can help to provide the forward looking business projections through the preparation of management reports. We work with our clients to identify company`s solvency and liquidity, profitability, asset returns, and the comparison between actual vs budget results. Our services include:

• Profit and loss calculations
• Actual vs. budgeted performance
• Cash flow forecasts
• Key performance indicators
• Profitability of projects

Management reports can be prepared and presented to the decision-makers of your business on a monthly or quarterly basis.

White November provides a complete range of accounting services to both private individuals and companies whether based in Malta, Cyprus or abroad. Each of our clients has a dedicated Account Manager as a main point of reference, whose main responsibility is to take over the ownership of our clients accounting records and assist with specific tasks such as the closing process or the preparation of statutory financial statements.

The services that we provide include:

• Day-to-day bookkeeping
• Company formation and administration
• Banking support
• Review of accounting policies, budgets, and projections
• Preparation of VAT returns
• Preparation of management accounts and ad hoc management reports
• Preparation of financial statements as per local requirements under IFRS
• Payroll support

White November offers our clients outsourced preparation and processing of payroll. We can provide tax and strategic advice on the best structure for employees, including advice on the relocation of staff to Malta or Cyprus, and actively assist on the hiring of local staff in Malta and Cyprus. White November has a proven track record for being one of the leading payroll providers in Malta, offering payroll and HR support to companies and individuals established in Malta, Cyprus and globally.

Our full range payroll services include:

• Preparation of weekly, fortnightly, or monthly payslips
• Assistance on P.E. Number and employment license applications
• Completion of E.T.C engagement and termination forms
• Handling of monthly Social Security contributions
• Preparation of annual FSS return forms