Saturday 18 November 2017
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Cyprus Taxation Services and Planning

Cyprus has become an international and European business center. As a full member of the E.U. since 1st May 2004 Cyprus has already established international financial center. The island has become the ultimate place for incorporating a company within European Union.

In the E.U Cyprus has one of the lowest tax rates systems which offer a tax regime of 12% tax. Cyprus upholds an exceptional legal and economic infrastructure where accountants, banks, tax authorities, hotels etc, have the maximum professional standards.

The above mentioned are a few reasons why many business people around the world choose Cyprus as their base for their business activities.

Making a permanent move overseas can be a tough decision. It is easy to push financial matters aside. The problem is that time can pass by very fast and this is one point in your life when doing nothing leaves your capital and income open to important risks.

 

Legal Corporate Tax
Legal corporate tax Cyprus is a term used to suggest the level of legal and corporate tax that is employed in Cyprus at any given time. The offshore regime in Cyprus has changed as part of the island's accession to the EU, and as a result of agreements with the Organisation for Economic Cooperation and Development (OECD). The 10% corporate tax gives Cyprus the lowest rate in the EU. This chimes in well with the legal corporate tax Cyprus.

Cyprus imposes corporation tax on 'companies': this term includes all companies incorporated or registered under any Cyprus law, and any foreign company which carries on business or has an office or place of business (permanent establishment) in Cyprus. Legal corporate tax on the island is well defined by solicitors in Cyprus. Tax benefits apply wherever Cyprus tax law is applicable.

 

Cyprus double taxation treaties
In Cyprus there is a complicated system of double taxation treaties offered for use by non-resident companies and a very specialized infrastructure. The documentation for the companies’ registry must be in Greek and bank referenced. Copies of passports must also be forwarded to the central Bank of Cyprus before a company grants an offshore status.

The jurisdictions of Cyprus are one of the most preferential for those looking for a residency permit at competitive tariffs. Consequently, Cypriot legislation permits an investor founding either a genuine offshore branch or a local Cypriot company the ability to be granted an reliable Cypriot residency permit.

Cyprus has ratified a large number of double tax treaties with a huge quantity of countries, for the avoidance of double taxation. Due to the widespread double tax treaty network system, Cyprus is a perfect location for investments to and from central and Eastern Europe and for investments to and from the E.U.

To meet the requirements, it is necessary to show management and control. Once office conveniences have been set-up it is then achievable to arrange residency permits for the favorable owner and his family within a short time period. The company itself will pay a 4.25% tax rate on its world-wide profits which will be charged at the end of the financial year based upon proposed audited accounts.

It is necessary to keep in mind that a Cypriot non-resident company must only manner trade outside of Cyprus and that at the same time as the company itself pays only a 4.25% tax rate any money reserved for the use of the advantageous owner will pay 50% of the normal individual tax rate, that if the beneficial owner plays an dynamic role in company affairs. This equates to a maximum tax rate of 20% but normally considerably lower.

Cyprus as a popular tax haven for public and trading companies can find important advantages in the double taxation treaties system available to offshore companies.

 

Tax Consultancy Cyprus
Cyprus is now a leading finance, holding, royalty and trading company jurisdiction and it is also operating in other types of tax structures as shipping structures, employment structures, and foreign permanent establishment structures.

The Cypriot jurisdiction offers many tax incentives: For instance, there is no taxation on dept equity, on profit of permanent establishment; It offers low personal tax rates and low social insurance contributions, the corporate tax rate 10 % is the lowest in Europe.

The Consultants in Cyprus can offer a wide range of a high quality services, such as: Formation and administration of local, offshore and International Business Companies; Corporate and financial consulting; Trust; Legal & corporate Services, Assets Management; auditing, tax, banking  and accounting services, general administrative support and more other business solutions.

It is not tax or risk free to leave cash on deposit! Not covering your wealth up in appropriate legal structures will mean that you and your family will pay more tax than needed, both during and after your lifetime. Inflation will show off the spending power of your income and capital, as will unfavorable movements in currency exchange rates. Taxation and inflation are the two biggest threats to one's wealth. Taking advice and guidance from specialists will help protect your capital. Consulting with a financial adviser with the appropriate knowledge and expertise is important.

 

For tax consultancy please click here to come in contact with Financial Advisors.

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