Substance in Cyprus is vital in order to:
- support Cyprus tax residency status
- avoid creating a taxable presence in another jurisdiction
- support transfer pricing challenges
- defend beneficial ownership challenges
- address increased anti-avoidance and anti-abuse provisions
- exchange information transparently and confidently
How CFA can help?
CFA specialists can assist you with the following services:
- Diagnostics of the tax risks arising in the existing structure
- Recommendations on the actions required to deal with these risks including aligning the following:
- Split of functions and risks between foreign jurisdiction and Cyprus
- Supporting of the desired functions and risks in the foreign jurisdiction and Cyprus with the corresponding substance in terms of decision-makers/employees’ location and documentation structure
- Assistance in the implementation of substance recommendations following the diagnostic review
- Assistance in preparing a comprehensive corporate governance framework
- Setting-up an office and hiring employees in Cyprus (including assistance in drafting employment contracts, obtaining work permits and optimization of taxation and social security liabilities with respect to the employees)
- Organization of decision-making process in relation to operational and strategic matters
- Providing support in relation to administrative issues (assistance in accounting functions, tax compliance, audit) of the Cypriot companies