Cyprus accounting offices and Investment Companies
A Cyprus IBC can be used as an investment company financing various projects internationally belonging to the same group. The advantages of a Cyprus Investment IBC are the following:
Interest income of investment companies is considered to arise from the ordinary activities of the company and is subject to 10% corporation tax.
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.
Cyprus has concluded tax treaties with more than 40 countries worldwide. Interest Income paid to Cyprus benefits from the low withholding taxes from countries with which Cyprus signed Tax Treaties.
For example interest is paid to Cyprus from Russia , Ukraine , Austria , Ireland , Norway , and South Africa with zero withholding taxes.