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Does a Cyprus company have a place in your company structure?
- Cyprus has the one of the lowest corporate tax rates in Europe at 10%.
- Cyprus has concluded treaties for the avoidance of double taxation with over 40 countries. These treaties grant relief from taxation to persons, legal or natural, that are tax resident in one or both of the contracting states.
- Dividend payments both paid to or out of Cyprus are wholly exempt from corporation tax. A special defence contribution may apply.
- When a Cyprus company will pay dividend to its shareholders no withholding tax is imposed in Cyprus.
- There is full exemption from corporation tax on profits from the sale of titles.
- There is full exemption from capital gains tax from profits realized from disposal of titles (with the exception of a company owning immovable property in Cyprus where 20% CGT is imposed).
- Losses can be carried forward and set off against future profits.
- Cyprus has adopted the European Merger Directive and has provided for flexible re-organization rules.
- Group relief is allowed when companies of the group are Cyprus tax residents. This may be extended to cover also EU tax residents.
- Cyprus does not have legislation to regulate foreign companies (controlled foreign company - CFC rules).
- The tax benefits are available to holding companies that hold at least 1% of the share capital of a foreign subsidiary.
- Re-domiciliation is allowed
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