I have a new cyprus company, with foreign benefeciary living abroad.
All reveue, all payments we have on bank account are advance payments. When we sell goods we charge fixed 5% commission. So it means that even if there are many funds on bank account, they are not actually profit but just advance payments.
Are any problems with tax agency or auditors if I state that we have this model of profit calculation? Or there are any derectives that profit must be calculated as Revenue (incoming payments to bank account) minus payments and epxenses (outcoming payment from bank account).
Please kindly advice.
All reveue, all payments we have on bank account are advance payments. When we sell goods we charge fixed 5% commission. So it means that even if there are many funds on bank account, they are not actually profit but just advance payments.
Are any problems with tax agency or auditors if I state that we have this model of profit calculation? Or there are any derectives that profit must be calculated as Revenue (incoming payments to bank account) minus payments and epxenses (outcoming payment from bank account).
Please kindly advice.
