FAQ

Send a request to office@gellertgroup.com

Yes. You can choose a convenient format of communication with our specialists from anywhere in the world.

This depends on the service selected. We request only the necessary package of documents, this saves time spent on producing specific documentation.

Yes, we often travel to clients in countries where we do not have an office to discuss specific projects.

It is important to understand what the bank's criteria should be initially. Perhaps you have chosen an unsuitable group of banks for the activities of your company. Put this task to our team and our experts will promptly offer the right solution.

It should be a bank that provides service to "merchant" companies. In this case, there will not be the highest rates. It is also important that the bank provides processing services.

This practice emerged many years ago, it is connected with security and the fight against illegal business. It is important for banks to understand at the stage of account opening who their client is. Our team has vast experience in communicating with banks at different stages of account opening and maintenance.

Yes, there are banks and especially payment systems in which it is possible to open an account completely remotely.

It depends on the category of the bank. Private banks in prestigious jurisdictions have the highest tariffs.

Type of license and number of services. Also, payment systems usually do not have a physical office.

In the best case, the request will be resubmitted and a specific date of expected response will be given. In the worst case, the account will be frozen or closed immediately.

Minimum of two current accounts in different financial institutions.

This depends on the geography of the services or goods provided by your company. It is also important to pay attention to the taxation in a given country.

This depends on the legislation in the chosen jurisdiction.

Yes, many jurisdictions allow you to have such a structure.

This depends on the country of residence of the owner of the asset and the purpose of use of the asset. For example, yachts are usually registered in the Caribbean or you can consider the UK, Gibraltar, Malta.

There is no clear recommendation but, historically, such companies are mostly based in Cyprus.

It depends on a large number of parameters. It is better to choose a country specifically according to your criteria.

Yes, many countries allow it.

Yes, our team solves such problems including.

Yes.

It depends on the type of residence permit. There are programs that allow you not to stay permanently in the country that issued the residence permit.

The income tax rate in Hungary is 15%.
Residents pay tax on worldwide income.
Non-residents pay tax on income earned in Hungary.

Employer pays social contribution - 13% (from January 2022) The social contribution rate for employees is 18.5%. Contribution to the training fund is 1.5%.

Stamp duties apply:

1. On gifts and transfers of property and property rights. For gratuitous transfers of residential property, stamp duty is levied at the rates of 9% and 18% in respect of other property. The transfer of property to close relatives or a spouse is not subject to tax.
2. when acquiring real estate, property rights, shares in companies that directly or indirectly own real estate in Hungary. The rate is 2 - 4% of the market value of the object, but not more than 200 million HUF.

This tax is levied by municipalities where the legal entity operates and is deductible for income tax purposes. The tax rate is set by the municipality itself, but should not exceed 2%. Some regions do not have this tax, e.g. Budapest.

This fee is paid at the rate of 0.3%. Medium and small businesses are exempt from this fee.

If a tax return is not filed on time, the tax office issues a penalty of 1200 HKD (approximately 160 USD).

If the tax return is overdue for up to six months, the penalty increases to approximately 360 USD. If the delay in filing the tax return is more than six months, the company will be required to appear in court. The court may result in a fine of up to HKD 10,000 (this is approximately USD 1,300).

Liability for failure to timely file a salaried employee report:
If the report is not filed on time, a fine of HKD 2,400 (approximately USD 310) or more is levied.

It is worth noting that from January 1, 2023, the new foreign source income exemption (FSIE) regime applies only to international business companies (MSEs) engaged in a trade, profession or business in Hong Kong. Thus, dividends and capital gains of a Hong Kong unit of an MSE arising from the disposal of interests will be taxable, as will interest and royalties. The new regime does not apply to dividends and capital gains from foreign sources if the receiving MSE complies with the "economic presence" requirement in Hong Kong.

The new regime does not apply to companies that have no income from sources outside Hong Kong, nor to companies that operate only in Hong Kong. Pure-Equity Holding companies are subject to simplified "economic presence" requirements.

Trusts that own a private investment holding company carrying on a trade or business in Hong Kong are also subject to the requirement of the new regime and, if the trust and the investment holding company are established in different jurisdictions, such structure will be treated as an MSE. In such a case, income of the investment holding company derived outside Hong Kong and received in Hong Kong will be subject to income tax under the new regime.

The Hong Kong Inland Revenue Department issues, free of charge, legally binding MSE opinions on whether the economic presence requirement is met on a case-by-case basis.

From 2023, a company incorporated in Cyprus is by default considered to be tax resident in Cyprus, given that it is not tax resident in any other jurisdiction.

Please note that as of December 31, 2022, Cyprus applies withholding tax on the payment of dividends, interest and royalties to countries listed in Annex I of the EU List of Non-Cooperative Tax Jurisdictions (also known as the EU Black List).

VAT is charged on the supply of goods and services in Cyprus, on the purchase of goods from EU countries and on the importation of goods into Cyprus.

VAT registration is mandatory for businesses with annual revenue from the sale of goods and services exceeding €15,600 in the last 12 months or expected revenue exceeding €15,600 in the next 30 days. Businesses with revenues of less than €15,600 or supplying goods and services the sale of which is not subject to VAT, but which are entitled to a refund of the relevant amounts of input VAT, have the right to register on a voluntary basis. In some other cases, the threshold for registration may not exist or may be lowered.

VAT returns must be filed quarterly in electronic form. VAT must be paid no later than the 10th day of the second month following the month of the end of the tax period.
Persons registered as VAT payers may request a different filing period. Approval is subject to the decision of the Commissioner of Taxes. The Commissioner has the right to require an individual to submit a VAT return for the previous period.
A taxable person who supplies goods and/or services to companies registered in other EU Member States is obliged to electronically file a VIES (VAT Information Exchange System) return on a monthly basis. The deadline for filing the VIES return is within 15 days after the end of the month in which the realization took place.

Every VAT registered company that supplies goods and/or receives goods from other EU Member States (the value of which exceeds the statistical threshold) is obliged to submit an INTRASTAT declaration on a monthly basis within 10 days from the end of each month. The thresholds are determined separately for arrivals and departures and may change each year.

The defense contribution is subject to:

• -17% in respect of dividends only if (a) more than 50% of the dividend-paying foreign company's income is directly or indirectly derived from investment activities and (b) the tax rate in the country of the dividend payer is significantly lower than the Cypriot tax rate (less than 6.25%).

• 30% in respect of "passive" interest, except for interest from loans issued, interest received in connection with the ordinary activities of the company, interest received by collective investment funds. Only income tax is payable on such interest.

• Gross rental income reduced by 25% is also subject to SDC at a rate of 3% (i.e. an effective rate of 2.25%). This tax is payable in addition to income tax.

The defense contribution on interest and dividend income received from sources in Cyprus is subject to withholding at source and is payable by the end of the month following the month in which the income is paid.

The defense contribution on dividend, interest and rental income received from abroad is payable semi-annually: June 30 and December 31.

Rental income is also subject to personal income tax / corporate income tax.
Taxes paid abroad can also be offset against the Defense Contribution payable.

Charged on the signing of various documents relating to property located in Cyprus or executed and executed in Cyprus.
The amount of the fee depends on the type of document and the amount of the contract, but cannot exceed €20,000.

When registering a Cypriot company €105 and €20 for each additional share issue.

Upon transfer of ownership of real estate, the buyer is charged a fee of 3% to 8% depending on the market value.

Exceptions:

1. If the real estate purchase transaction is subject to VAT, the relevant fees do not apply.
2. If the real estate purchase transaction is not subject to VAT, the relevant fees are reduced by 50%.

Individuals are taxed at the following rates, depending on the amount of income (see picture above).

Contributions to the social insurance fund are paid by the employer-8.3% and by the employee-8.3%.

Other employer contributions:

• layoff fund - 1.2%;
• training fund - 0.5%;
• social support fund - 2%;
• health insurance fund - 2.9%;
• vacation fund - 8% (unless an exemption applies).

Employees also pay a contribution to the health insurance fund - 2.65%. Contributions are subject to amount limits.
The rates and amount limits are updated periodically.

The financial statements must be presented for approval at the Annual General Meeting and filed with the Registrar together with the annual report (Form HE32 / Annual Return) within 28 days of the Annual General Meeting. The annual report together with the audited financial statements must be filed within 12 months of the previous annual report, excluding the calendar year.

A company's reporting period may be arbitrary, but the end date of the reporting period is usually combined with the end of the calendar year. The reporting period should not exceed 12 months (18 months for the first reporting period).

• If the company is registered in the first half of the year (before July), the first accounting period lasts from the date of registration to December 31 of the year in which the company is registered - the first accounting period is less than 12 months;
• If the company is registered in the second half of the year (from July to December), the first reporting period runs from the date of incorporation to December 31 of the year following the year of incorporation - the first reporting period is more than 12 but less than 18 months;
• The following reporting periods coincide with calendar years.

Corporate Income Tax An income tax return (IR4) must be filed with the tax office within 12 months after the end of the reporting period, i.e. by December 31 of the year following the reporting year. The deadline for filing the declaration electronically is March 31 of the following year.

For example: for the reporting period ended December 31, 2020, the deadline for filing the IR4 electronic declaration is 31.03.2022.

Corporate Income Tax

In case of late submission of a tax return or supporting documents requested by the tax inspector, the company pays a fine of up to 200 euros. This fine depends on the specific case.
If the tax is not paid on time, the company is subject to a penalty of 5% of the tax due.
The government interest rate applicable to late payment of taxes, as established by the Minister of Finance, for all amounts due after January 1, 2020, is: 1.75% (1.75% for 2021 and 2020; 2% for 2019; 3.5% for 2017 and 2018; 4% for 2015 and 2016; 4.5% for 2014; 4.75% for 2013, 5% for 2012 and 2011;5.35% for 2010, 8% for 2007 through 2009, and 9% for the period through December 31, 2006).


НДС (VAT)

The penalty for late submission of a VAT declaration is 100 euros for each declaration
Penalty for late submission of VIES declaration is 50 euros for each declaration
Penalty for late registration as a VAT payer is 85 for each month of delay.
Penalty for failure to submit a "reverse charge" calculation (effective from July 1, 2021) is 200 euros for each declaration.
In case of late payment of VAT, a penalty of 10% of the amount of tax payable will be charged.


SDS (Contribution for Defense)

Penalties in the amount of 3.5% p.a. of the tax amount; penalty for late filing of SDC declaration in the amount of 100 EUR; penalty in the amount of 5% of the tax amount.

The first reporting period is usually between 6 and 18 months. Each subsequent one lasts 12 months from the end date of the previous period.
The timeframe for preparing and filing reports depends on the type of company and in which Emirate or FEZ the company is registered and varies from 3 to 9 months from the end of the reporting period.

The standard rate in the UAE is 5%

The threshold for mandatory VAT registration is AED 375,000. Proactive registration is also possible after exceeding the taxable transaction threshold of 187,500 AED. Reporting is done on a quarterly basis.

The rate for UAE nationals is normally 17.5%:

• -12.5% of the remuneration is paid by the employer
• 5% is withheld by the employer from the employee's remuneration

The rate in Abu Dhabi is: 20% (employer's contribution is 15%)

Registration fees may be levied for land and real estate transactions.

There are also excise duties on certain groups of goods, fees in relation to the hotel and tourism business.

There are 99 double tax treaties (DTCs) and 8 tax information exchange agreements (TIEAs).