Tax Planning

For many years Cyprus was one of the leading financial centers in the world. Following the accession in the European Union and the adjusted legal and tax system, Cyprus enjoys additionally all the benefits of EU Directives and free market benefits. Its extensive and ever expanding network of Double Tax Treaties allows preparing a “tailored” tax plan for the business and its future development including subsidiaries and partnerships.  

Introduction of the concept of tax resident and non-resident companies Taxation of worldwide income for tax Residents and Cyprus sourced income for non-residents A uniform corporate rate of 10% Tax-exempt business profits of non-resident companies Tax-exempt gains on the trading and disposal of securities Tax-exempt dividend income (subject to applicable criteria) Exemption of 50% of interest income (subject to applicable criteria) Tax-neutral group re-organizations Tax-relief for group losses Full adoption of the EU Parent-Subsidiary Directive

• Full adoption of the EU Mergers Directive
• Full adoption of the EU Directive on Mutual Assistance and Cooperation
• Full adoption of the EU Royalty and Interest Directive
• Transitional rules for exiting IBC’s until 2005