The service sector is the most common in Cyprus as Cyprus Companies are used as vehicles to provide services to international companies thus taking advantage of the 12.5% Cyprus corporation tax rate and the Cyprus legal framework which is based on the Anglo Saxon Common Law.
Service companies provide amongst others the following to their clients;
- Advisory services
- Consultancy services
- Management services
- IT and computer related services
- Property management services
- Director services
At CYAUSE Audit Services Ltd we place great emphasis on preliminary meetings with clients prior to the setup up of such companies in order to assess all tax, VAT, legal implications prior to the commencement of trade of these companies.
Due to the fact that these services take place in various jurisdictions key concern is always the VAT treatment which depends on the substance of each individual transaction and the current enforceable VAT regulations both locally and internationally (European Union Directives).