A company is considered as a Tax Resident in Cyprus, if the management and control of the company take place in Cyprus.
If the majority of the Directors is tax resident of Cyprus, the board meetings and the major business decisions are made in Cyprus then, the Company should be tax resident in Cyprus.
If it is Tax Resident in Cyprus, it pays Cyprus Tax at the rate of 12,5% and it also takes advantage of the Double tax treaties of Cyprus and the tax exemptions of the Cyprus tax legislation. Due to beneficial ownership restrictions in most of the modern Double Tax Treaties around the world a professional advice is needed before establishing a new company or start using Double Tax Treaty benefits. Please be aware of cheap solutions that can prove to be highly costly in the future. Our well-educated professionals will assist you on proper and efficient tax planning.
Corporation tax is payable on the worldwide income of a Cyprus tax resident company.
Cyprus has one of the lowest tax rate in EU. Corporation tax is 12.5% on business profits which in many cases can be reduced up to 0% due to exemptions of various types of income. For example, the gain from disposal of securities is tax exempt. The same applies for dividend income in most of the cases.