1st reason out of 8 to register your company under the Cyprus jurisdiction

Taxation

Opening a company is a matter which must be examined from various perspectives before any individual proceeds in such steps. Registering a company under the Cyprus jurisdiction is considered ideal due to various reasons, with the main one being the favourable taxation system. The Corporation tax rate in Cyprus is 12,5%, among the lowest in the EU and covers the income raised in the course of the company’s activities within Cyprus.

Capital gains are not taxable in Cyprus except for 20% tax on gains from immovable property situated in Cyprus or on any gain from the sale of shares in companies that own immovable property in Cyprus.

Cyprus has also entered more than 60 Double Tax Treaties that is ideal for tax planning, offering options for relief or discount from withholding tax on dividends, interests and royalties paid to non-residents.

What is more, Cyprus tax resident companies are taxed on income generated from sources inside Cyprus and abroad. Companies which are not tax residents are taxed under the Cyprus taxation scheme only for income generated inside Cyprus.

A company is classified as Cypriot tax resident if its management and control are performed from Cyprus. The Income Tax Legislation does not provide a definition of what constitutes the “management and control” of the company and it’s determined on a factual basis.

This article is only for informative purposes. Should you require further expert guidance, please do not hesitate to contact Simon Zenios & Co LLC below:

Email: [email protected]

Telephone: +357 24 023370

Published on: 07/10/19