Cyprus – An Excellent Place for International Tax Planning

Cyprus International Business Companies

Cyprus is a member of the European Union. This means that Cyprus companies benefit a lot when they do business operations in the country. It is also very helpful that Euro is its official currency. With this, trading is much easier and simpler for Cyprus companies. At the same, they feel more secured and confident with the jurisdiction. Cyprus is known to have low tax rates. For instance, within the European Union, it offers that lowest corporate tax at the rate of 10{bcb10712eadb32c7e50a15bcbfb14ed4d7108a9fa2a5dcafffbff4bd1d9a4f28}. Aside from that, there is no withholding tax involved when a company gets dividends. A Cyprus company is also entitled to 45 double tax agreements. More interestingly, Cyprus does not impose wealth tax.

The Cyprus International Trust

Establishing an international trust in Cyprus brings about a lot of benefits. When a trust gets income from a source outside of Cyprus, there is no need to pay any tax. Also, it is known that Cyprus has an extensive network of double tax treaties that involve several countries including US, Canada, and China. Under this network of double tax agreements, investors are able to do trade and business operations with some other countries and territories. Cyprus is also suitable for the purposes of paying or forwarding big funds because there are no exchange controls. There is also no need to worry about security because the name of the trust owner is kept private. There is also no need to submit financial reports. The privacy offshore handlers or owners of Cyprus IBCs, trusts, and bank account are given much importance in Cyprus. They have regulations and policies that aim to protect details of offshore bank accounts. Those who will do otherwise will be punished by the law. In addition, owners can maintain their anonymity and confidentiality when they have their offshore companies registered. Their names will be confidential unless a court warrant is released so that the information may be used for criminal investigation.

Rules and Regulations

Of course, Cyprus companies still have to follow some rules and regulations. As they are entitled to an attractive business and trade ambience, they have to do some of their obligations. Every year, companies should come up with accounting reports that they should forward to the appropriate departments. They should also file their yearly return which bears the names of the secretary and director of the companies.

Conclusion

In general, Cyprus is a favorable tax haven that provides that most suitable conditions that ideal for establishing trusts, having bank accounts, and creating offshore companies. It is also very notable that nationality is not a barrier when it comes to having offshore companies as well as accounts. Cyprus may have strict rules when it comes to the formation of offshore companies, but there is no doubt that they give way to the creation of the most flexible and advantageous offshore companies and establishments. For international tax planning, Cyprus is truly a great tax haven to consider.

Brittney Herbert

Next Post

A Quick Introduction to 5 Kinds of Hydroponic Systems

Wed Sep 13 , 2023
Growing crops hydroponically is an environmentally friendly way to farm for several reasons. First it increases the amount of nutrients picked up by the plant, second it almost eliminates pests found in soil and soil related diseases. Thirdly, hydroponically grown crops tend to yield more produce than their planted cousins. […]

You May Like