No withholding taxes on Royalties payable to non-resident, when the right is used outside Cyprus For rights used in Cyprus there is 10% withholding tax unless a Double Tax Treaty provides for [...]
Profits from a Permanent Establishment abroad are exempt from tax. The exemption does not apply if the Overseas Permanent Establishment: Engages directly or indirectly by more than 50% in activities that lead [...]
Interest earned from financing activities is taxed as ordinary business income at a rate of 12.5% (after deducting all business expenses). A very low profit margin of as little as 0,35% is [...]
Dividends are exempt from corporation tax Dividends received by a company are not subject to Special Defence Contribution (SDC) unless: The non-resident company paying the dividend engages directly of indirectly by more [...]
The tax loss incurred during the year is carried forward and set off against future profits for a period of five years. In addition the loss can be set off against the [...]
Cyprus is not a tax heaven. It is a highly respectful jurisdiction and its status was considerably improved after its accession to the EU. As a result registration of new International Business [...]
This legislation reduces Cyprus taxes on payments outside Cyprus to 0% which makes Cyprus a very popular jurisdiction for holding, financing and royalty companies.
Cyprus differs from most other offshore jurisdictions, in that it offers a big number of double tax treaties (44 in total), for the avoidance of double taxation. In general most of the [...]
A company is considered as a Tax Resident in Cyprus, if the management and control of the board meetings, take place in Cyprus. If the majority of the Directors is tax resident [...]
Capital gains is taxed at 20% on gains but gain on disposal of securities is completely exempt. Gains on disposal of property situated outside Cyprus is also exempt from any taxation.