Under new legislation worldwide income taxation of foreign-controlled Cyprus offshore companies will no longer depend on where they are registered but on where they are managed and controlled.
As a full member of the European Union, Cyprus offers a secure, well regulated financial environment for international clients. Cyprus, by virtue of its exceptionally advantageous tax system, is emerging as the most favored jurisdiction in Europe to conduct international business from. This coupled with the added advantages of EU Membership rightly justify The World Bank’s characterization of Cyprus as the region’s “miracle”.
Cyprus imposes the second lowest tax rate for individuals and the lowest taxes on corporate profits among the euro area countries, according to data published by Eurostat. The maximum tax rate for individuals in Cyprus is 30%, while the average in the euro zone is 42.4% and 37.5% in the EU. Regarding the tax on corporate profits, the rate in Cyprus is 10%, while the average in the euro zone is 25.7% and in the EU 23.2%. In addition, Cyprus is one of the most advantageous places of residency for Russian and Ukrainian companies.
Also it offers a high level of banking, auditing, accounting and legal services, which developed Cyprus into a successful international business and financial centre. Companies registered in Cyprus but managed and controlled from abroad, will only be taxed in Cyprus on their income generated in Cyprus.
Offshore company in Cyprus will enjoy exemption from tax on foreign dividends and interest and income from any permanent establishment abroad, as well as all foreign tax credits and offsets of losses incurred abroad. They will not be entitled to benefits under the double taxation treaties, but will not be subject to the exchange of information rules under such treaties. So offshore company in Cyprus can be referred to as an international business company nowadays.
Shipping Companies Are The Way Forward For International Shipping
How Globalization Affects Countries’ Foreign Policy
Steps to Successful Exporting