Standard Admin / Friday, March 24, 2023 / Categories: Old Blogs Cyprus Crypto Tax - Frequently Asked Questions CYPRUS CRYPTO TAX - Frequently Asked Questions Are individuals taxed on crypto trade in Cyprus? Individuals trading in cryptos are subject to PAYE tax as any self employed person would be taxed. This means that the profits on their trades will be added to their existing salaries and be taxed usually at 35%!! We strongly recommend you to create a Company to minimise the tax. Contact us for more guidance Are Companies taxed on crypto trade in Cyprus? Crypto trading is taxed like any other trade and it is subject to 12.5% Corporation Tax and dividend tax for Cyprus tax residents and domiciled persons. What is the best way to trade cryptos? The best way to trade Cryptos is via a Cyprus company primarily due to low taxes involved. Can I use a company in a tax free zone to trade cryptos and receive my profits? In Dubai for instance or equivalent jurisdiction? Yes you can but you need to bear in mind that you are still taxable on your worldwide income in Cyprus or at the place of your tax residency. Therefore, even if your Dubai company will not be taxed, the dividends or income you receive must be reported on your tax return at the country of your tax residency. Using overseas tax free companies could be risky if you do not have the appropriate consultation so please contact us for further guidance. Is getting a tax ruling popular? Will it create suspicion for me? Getting a tax ruling is very popular and will not generate any potential issues. Different departments of the Cyprus income tax office are dealing with the tax ruling enquiries. In addition it is very profitable for the Cyprus Income Tax Office to receive such enquiries as there are disbursements involved for the application. What are the disbursements for tax rulings? Euro 2,000 for the expedite process which takes appr. 1month; or Euro 1,000 for the slow process that takex appr. 2-3 months to get a response. Read / Watch our latest articles on Cyprus Crypto Tax Cyprus Crypto Tax for Companies and Individuals Watch a video on Crypto currency tax (Video) Tax Free Crypto Currency Trade (Video) CYAUSE Audit Services Our firm services more than 300 clients from various backgrounds and industries. In our capacity of auditors, business consultants and tax experts we are required on a frequent basis to provide tax rulings or tax advice to complicated tax structures and transactions. Our long term experience in the field and frequent communication with the local Income and VAT offices enables us to give solutions and opinions fast and reliably. Feel free to learn more about us by viewing our website www.cyprusaccountants.com.cy. If you require a tax ruling send me an email directly at kt@cyprusaccountants.com.cy Previous Article Cyprus Relocation: Interview with our CEO - Tax Benefits and More Next Article Cyprus Crypto Tax - Increases in wallet gains. Are they taxed? How? Print 425 Rate this article: No rating Please login or register to post comments.
CYAUSE Audit Services Our firm services more than 300 clients from various backgrounds and industries. In our capacity of auditors, business consultants and tax experts we are required on a frequent basis to provide tax rulings or tax advice to complicated tax structures and transactions. Our long term experience in the field and frequent communication with the local Income and VAT offices enables us to give solutions and opinions fast and reliably. Feel free to learn more about us by viewing our website www.cyprusaccountants.com.cy. If you require a tax ruling send me an email directly at kt@cyprusaccountants.com.cy