Employment Company Structure
A Cyprus International Business Company can be used tax efficiently as an
employment company. It can employ staff on overseas assignments and charge
overseas operating companies at a cost plus basis. The profits of the Cyprus Employment Company will be taxed in Cyprus at 12,5% and the taxable profits of the overseas operating company will be reduced accordingly by the cost of the employment services invoiced by the Cyprus employment company.
In addition, the salary costs for the overseas operating companies will be reduced significantly as social security and other employer contributions are much lower in Cyprus than most EU countries. The employees will not be subject to tax in Cyprus.
GCP Auditors have unique experience and expertise in the field of employment companies in Cyprus. We have significant experience in dealing with the Cyprus authorities when it comes to obtaining the so-called ‘E 101 forms’ for employees assigned to other EU member states.
We are able to assist clients using this kind of companies in all relevant areas, such as incorporation, domiciliation, taxation, legal matters and accounting matters.