- What is the corporate tax rate in
Cyprus?
- What is a Double tax Treaty?
- What are
the main advantages of forming a company in Cyprus over other jurisdictions?
- What are the requirements to form a company in
Cyprus?
- Corporate Income Tax. It is 10% on
the net profits of the company. It is the lowest in the EU.
- Double Tax Treaty. It is a bilateral
agreement between between 2 states that sets the chargeable taxes in wither
of the 2 states on corporate, interest and royalty income. The idea is that
the receiving state will provide a credit for the taxes paid in the
operating state in which case the company will pay the highest of the 2
states taxes.
- The main
advantages over other jurisdictions are
- Cyprus does not charge any withholding Tax on Dividends, Interest or
Royalties distributed to non resident shareholders despite any double
tax treaty in place. This renders Cyprus as an excellent exit point for
EU inward investment.
- Part of European Union hence corporation can enjoy the benefits of
the Parent/Subsidiary Directive as well as Interest/Royalty Directive.
- Requirements. At least 1 shareholder, Bank
Reference of shareholder and Director, copy of their passports, Residence
certificate.
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