Accounting & Tax Compliance

Overview

Compliance work for a Cyprus company looks like a filing calendar and functions as an evidence base.

Two positions depend directly on how the accounting record is kept. The IP Box nexus fraction is computed from expenditure classified as qualifying, uplift or overall, cumulatively across the life of an asset, so a ledger that does not distinguish those categories cannot support the claim. And the substance position rests on records showing where costs were incurred, who was employed and what was paid for locally.

Both are retrospective questions asked years later. Expenditure classified as it was incurred is evidence. The same expenditure reclassified during a review is an assertion.

That is the reason the bookkeeping is not treated as a commodity. The chart of accounts is built to answer the questions the structure will be asked.

What is included

• Bookkeeping to a chart of accounts designed around the company's structure and reliefs
• Expenditure classification supporting the IP Box nexus fraction where applicable
• VAT registration, periodic VAT returns and VIES submissions
• Payroll processing, social insurance and GESY contributions, and employer filings
• Management accounts on an agreed periodic basis
• Preparation of financial statements and coordination of the statutory audit
• Corporate income tax computation and return
• Special Defence Contribution and deemed distribution review where relevant
• Liaison with the Tax Department on assessments, queries and residency certificate applications
• Coordination with transfer pricing documentation where intercompany arrangements exist

How Doviandi approaches this

The chart of accounts is designed, not inherited. Where the IP Box applies, the ledger separates qualifying expenditure, related-party development and acquisition cost from the outset. Retrofitting that distinction across three years of transactions is expensive and produces a weaker record.

Attribution is handled during the year. For a subscription business, isolating the income attributable to the qualifying asset is a transfer pricing exercise that belongs alongside the bookkeeping rather than at the return. We build it into the periodic process.

Audit is coordinated, not just commissioned. Preparing for the audit properly shortens it and avoids the qualifications and late adjustments that create questions elsewhere. The audit requirement applies at any size, so it is a fixed annual event worth running well.

Contribution ceilings are applied correctly. Cyprus applies three different ceilings across social insurance, GESY and the uncapped Social Cohesion Fund. Treating them as one blended rate misstates employer cost, in both directions, which matters when hiring decisions are being made on those figures.

Related knowledge

Background reading on the questions this service answers:

• How qualifying profit is calculated on the expenditure categories the ledger has to distinguish.
• Economic Substance on the records that evidence the residency position.
• Why use an ASP instead of incorporating yourself? on the recurring obligations that continue regardless of who administers them.