-
Uniform
corporate tax rate of 10% (the lowest in the EU) which, in combination
with the tax exemption for dividends and profits for permanent
residence overseas, may be reduced to 0%.
-
Treaties for the avoidance of double taxation with 40 countries.
-
No
withholding of tax on dividend income and rights paid by a Cyprus
enterprise to a non tax citizen of Cyprus (company or individual).
This, in combination with the tax exemption for dividends and profits
earned from permanent establishment abroad as well as the provisions of
the Treaties for the Avoidance of Double Taxation and the EU Directive
regarding parent-subsidiary companies may lead to a complete avoidance
of taxation.
-
Exemption
for tax on profits from stock which, in combination with the Avoidance
of Double Taxation, may result in complete tax voidance.
-
Exemption
for tax on capital gains and income on the disposal of property abroad
which, in combination with the Avoidance of Double Taxation Treaties,
may result in complete tax avoidance.
-
Contemporary provisions for re-structuring which allow the readjustment of existing or future structures without any tax costs.
-
Introduction
of provisions regarding the setting off of group relief between
companies of the same group and the abolition of deadlines for the
utilization of tax losses.
-
Taxation
according to the EU Directive for the tax status enjoyed by holding and
subsidiary companies (EU Parent Subsidiary Directive).
-
0% Value Added Tax (VAT) for the movement of products and services in the European Union
