Permanent establishment: A permanent establishment
is defined as being a fixed place of business through which
the business of an enterprise is wholly or partly carried
out.
The term includes especially:
(i) a place of management
(ii) a branch
(iii) an office
(iv) a factory
(v) a workshop, and
(vi) a mine, an oil or gas well, a quarry
or any other place or extraction of natural resources.
Any building site or construction or installation project or supervisory
activities in connection therewith constitute a permanent establishment
only if it lasts more than three months.
Input Tax: This is the Value Added Tax payable on the provision of goods and/or services to a taxable person. Note that this is one of the incidences where the word ‘person’ may refer to either a company, or a VAT-registered individual.
Output Tax: VAT paid to a taxable person by non-tax-registered retail customers is termed as Output Tax
Registered Person: A person or corporate entity who/which is registered in the Cypriot VAT register
Business: Any commercial activity which is undertaken for-profit, regardless of whether this activity results in profit or loss.
Standard Rate of VAT: In the Republic of Cyprus, the standard rate of VAT for goods and services either imported or rendered stands at 15%
Reduced Rate of VAT: Following an amendment on October 19th 2007, there are now two reduced rates of Value Added Tax in the Republic of Cyprus. VAT Rate 1 runs at 5%, while VAT Rate 2 stands at 8%. For more information about the types of goods/services covered by each rate, visit the Cyprus VAT Office Website.
Zero Rate: There are a variety of goods and services which fall into the zero-rate category, i.e on which no VAT is chargeable. Once again, you are advised to visit the Cyprus VAT Office website for more information.
Prescribed Tax Period: The PTP consists of a three month period, which basically constitutes one tax quarter in the financial year.
Tax Assessment: This is the simple process of determining how much tax is payable. However, in the Republic of Cyprus, tax assessments can be of a somewhat arbitrary nature, especially when you’re registering as self-employed, and the official behind the desk assesses your future Social Insurance contributions prior to you actually having earned anything. Our advice; get an accountant...
Monetary Levies: In effect, these are penalties imposed by the Ministry of Finance for failure to comply with certain portions of Cypriot tax and VAT laws.
|
