Cyprus accounting offices and Consultancy Services Companies – Professionals and consultants with international business activities can use a Cyprus IBC as a tax planning tool for the management of their operations in Europe or to third countries.
The Cyprus IBC will enter into contracts with other parties for the performance of the relevant work and will invoice and receive payments accordingly. Therefore, the profits will be transferred to a low tax jurisdiction.
Cyprus is a suitable jurisdiction with extensive double tax treaty agreements.
The advantages of a Cyprus IBC offering consultancy services are the following:
The income from consultancy services will be subject to corporation tax at the rate of 10% after deducting all allowable expenses such as salaries and consultancy fees.
The salaries paid by a Cyprus IBC to employees who are not resident in Cyprus , are not subject to any taxation or social insurance contributions in Cyprus .
The fees paid by a Cyprus IBC to consultants who are not resident in Cyprus , are not subject to any taxation in Cyprus .
No withholding tax on dividends distributed to non-resident shareholders of Cyprus Companies.