Cyprus company and Cyprus tax planning
WHY CYPRUS COMPANY AND CYPRUS TAX PLANNING?
1) Favourable tax regime
– Cyprus tax (Corporation) tax rate 12,5% including interest income (Low profit margin on loans acceptable subject to Cyprus company risks)
– No capital gains taxes
– Full exemption from Cyprus tax on dividend income received in almost all cases,
– Dividend payments from Cyprus Company to Zero Tax Company/EU/Non EU entity/Individual non resident recipient will not suffer any withholding Cyprus tax.
– Cyprus companies that are originally financed by own funds / equity are given notional Interest deduction (NID). This means a reduction of the overall effective tax rate of a Cyprus Company depending on the level of Cyprus Company capitalization.
2) One of the cheapest places in EU for professional services and maintaining International companies/trusts/Collective investment schemes/ Alternative Investment Funds (AIFs), especially compared to Luxembourg, Switzerland, Netherlands, etc).
3) Cyprus is not an offshore jurisdiction; it is a member of EU with low tax regime, offering sophisticated planning structures combined with the formation and administration of International trust and collective investments schemes empowered by Corporate, collective investments schemes and Trust laws based on UK legal system
4) High quality professional services; Cyprus accountants and lawyers are mostly UK educated and members of professional bodies governed by ethical codes of UK or International organisations.
5) Opening of a Cyprus bank account or opening of a bank account anywhere in the world without losing Cyprus taxation benefits
HOW CYPRUS COMPANY AND CYPRUS TAX STRUCTURING?Cyprus business can be initiated within few working days by:
1) Acquire a Cyprus company (shelf Company) transfer shares to nominees who will hold the shares on behalf of the ultimate beneficial owners thus keeping identity secret and preparation of deeds of trust by the nominees declaring that they hold the shares in trust on behalf of the ultimate beneficial shareholders
2) Open a Cyprus bank account in the name of Cyprus Company by obtaining from the beneficial owners, copy of passport, utility bill and a bank reference letter. You may also open bank accounts anywhere in the world and in any currency.
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Accordingly no person, entity or corporation should act or rely upon any matter or information as contained or implied within this publication without first obtaining advice from an appropriately qualified professional person or firm of advisors, and ensuring that such advice specifically relates to their particular circumstances.
PKF Cyprus firms are member firms of the PKF International Limited network of legally independent firms and do not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms.