Cyprus Tax Law System on International Business Companies

Predictability is one of the elements an effective business executive should acquire. Unless you can have the skill to forecast a realistic gain and losses for the company, you are not to be given the task to lead it in tje road to success. Foresight is one of the abilities sought after in business-minded individuals and it is also the same quality that has to be seen in a government you wish to invest upon.

Straight Forward Nature of Cyprus Tax Law System

It’s not too hard to understand if you will gain favorable returns if you choose to register your IBC in Cyprus. The tax legislation is very predictable and the open relationship promoted by the tax authorities makes it all the more inviting. This makes the Cyprus tax system very competitive and attractive.

Thin Capitalization

You will be more than satisfied to learn that Cyprus does not have any minimum capitalization requirements. This gives opportunity even for small-scaled business entrepreneurs to venture into the business community, as long as they believe their business idea will go well in the country.

Exemption from Various Types of Taxes

Non-resident shareholders of IBC are automatically exempted from any withholding tax, including royalties and interests that are paid to Cyprus tax authorities. Profits and gains that are derived from sales of securities are also exempted. That includes bonds, shares, and debentures. Net worth taxes, stamp duties is another matter to disregard once you have registered an IBC in Cyprus because such taxes are not applicable anymore.

Wide Network of Double Tax Avoidance Treaties

Cyprus has signed so far 49 Double Taxation Avoidance Treaties. This is one of the reasons many are interested to have their IBCs registered in Cyprus. It’s the perfect opportunity for businesses to enter the global market and particularly the European market. At times, it is very challenging to penetrate or even enter the premise of the European Union members, since Cyprus has been given the rights to become one of its elite members; its registered companies are also given the right to transact business with members of the EU.

Low Tax Rates

You are happy to see the tax exemptions in Cyprus, but you will be happier to learn it has favorable tax rates too. The corporate tax rate in Cyprus remains at 10%, which is the lowest in comparison to other members in the European Union. The VAT rate maybe at 17%, but it is still one of the lowest rates among the European Union members; nevertheless, Cypriot companies have the option to recover the VAT through analysis and preparation.

With this list of advantages, it is enough to convince anyone to register a company in Cyprus. The Register of Companies requires that anyone interested to push through with registration in the region has to seek the signature of a licensed Cypriot lawyer. You will find a handful willing to sign for this purpose, but if you are wiser then you should look further in the future and see the other services they may provide for you. You may be looking for the perfect Corporate Secretary that can handle all the documents and tax preparations you need to submit periodically to the Registrar.

Grace Chan was born in China and she is currently studying accounting and international tax planning at Cyprus European University.