Accounting Offices in Cyprus and trading and re-invoicing companies
International trading is one of the most commonly used examples where a Cyprus IBC can be used. An intermediary Cyprus IBC can be placed in between a Buyer and a Seller. In this way, taxable profits can be transferred from a high tax jurisdiction to one with low taxes. The trading will continue with the goods moving directly from the seller to the final buyer and the documents through the intermediary Cyprus IBC company.
The addition of a Cyprus IBC in the commercial chain can be suitable for a seller or a buyer. Both the seller and the buyer can use an intermediary IBC to reduce taxes paid on the profits arising from the trading in their home countries.
It must be mentioned that the transactions with the intermediary company should be entered into on terms and conditions which could be obtained on an arm’s length basis from independent third parties.
For trading within Europe it is necessary to register the company for VAT purposes. We can assist you to register with the VAT Authorities in Cyprus and we can administer the VAT documentation.
The advantages of Trading and Re-invoicing Cyprus IBC’s are the following:
Movement of goods
Goods are not necessary to be physically delivered to Cyprus . They are delivered directly to their destination.
VAT registration in Cyprus , a European Union member country.
Trading profits will be subject to corporation tax at the rate of 10% after deducting all relevant expenses.
No withholding tax on dividends distributed to non-resident shareholders of Cyprus Companies.
No withholding tax on interest paid by a Cyprus Company to non-resident creditors.