Cyprus accounting offices and Royalty Companies

Cyprus accounting offices and Royalty Companies

Royalties are the payment of license fees or commissions by one individual or entity to another for the use of intellectual property such as:

• patents
• trademarks
• copyright

For many international companies, the development and licensing of intellectual property can be considered as one of their most important activities. Licenses can be granted to third parties or related parties. Adequate structuring of the ownership of the intellectual property and channeling of the license payments can lead to significant tax benefits.

The advantages of a Cyprus IBC granted the royalty rights to use a patent, trademark or innovation outside Cyprus are the following:

Royalty income
The royalty income of a Cyprus IBC will be subject to corporation tax at the rate of 10% after deducting all relevant expenses including royalties paid. Therefore, a small margin of net royalty income will be taxable in Cyprus at 10%.

Any withholding taxes over the royalties received by the Cyprus Company can be deducted from corporate income tax payable in Cyprus .

Royalties paid
If a Cyprus IBC is granted the royalty rights to use a patent, trademark or innovation outside Cyprus, then there are no withholding taxes on royalties paid by the Cyprus company.

Dividends distributed

No withholding tax on dividends distributed to non-resident shareholders of Cyprus Companies.

Interest paid

No withholding tax on interest paid by a Cyprus Company to non-resident creditors.

Royalties received
Cyprus has concluded tax treaties with more than 40 countries worldwide. Royalty payments to Cyprus licensing companies benefit from the low withholding taxes imposed by countries with which Cyprus signed Tax Treaties.

For example royalties are paid to Cyprus from Russia , Ukraine , Austria , Belgium , Denmark , Hungary , Italy , Norway , South Africa , USA , and Sweden with zero withholding taxes, Ireland and Greece 5% on film royalties only, France, Germany and UK 5% on film and TV royalties only.


Show more
Show less

Tags: Accountant in Cyprus, Accountants in Cyprus, Accounting association in Cyprus, Accounting Consultation, Accounting firms in Cyprus, Accounting offices in Cyprus, Accounting services in Cyprus, audit firms in Cyprus, Auditors in Cyprus, Budgeting and Forecasting in Cyprus, Business advisors in Cyprus, Business in Cyprus, Business Risk Analysis, Consultancy in corporate investment, Cyprus Accountant, Cyprus Accountants, Cyprus Accounting firms, Cyprus Accounting offices, Cyprus Assurance & Advisory, Cyprus audit firms, Cyprus Audits, Cyprus banking services, Cyprus Bookkeeping, Cyprus Business Consultancy, Cyprus business consultants, Cyprus chartered accountants, Cyprus consultants, Cyprus Corporate Finance, Cyprus corporate services, Cyprus corporate services providers, Cyprus Corporate Tax Services, Cyprus corporation tax, Cyprus Financial Advice, Cyprus Financial Consultancy, Cyprus financial planning, Cyprus financial services, Cyprus Human Capital, Cyprus International Business, Cyprus Investment & Wealth Managing, Cyprus IT Services, Cyprus Management Consultancy, Cyprus tax, Cyprus Tax Consultants, Cyprus tax information, Cyprus Tax Planning, Cyprus Value Added Tax (VAT), Cyprus Value Added Tax Services, Cyprus wealth management, Fund services in Cyprus, International tax planning, Investment in Cyprus, Off Shore Cyprus (Services), Performance and assets monitoring, Registration of Cyprus Companies, Registration of Offshore Companies, Special Purpose Audits, Starting a business, Tax Benefits Cyprus, Tax planning in Cyprus, Trustee and fiduciary services


Popular Practices

© Accountants in Cyprus. All Rights Reserved.
Accountants In Cyprus | Accounting Portal - LogoAccountants In Cyprus | Accounting Portal - Logo