What Cyprus accounting offices can do about Cyprus Resident Companies
Basis of taxation
A company incorporated in Cyprus is considered to be a tax resident of Cyprus if it is managed and controlled in Cyprus . A company to be managed and controlled in Cyprus is expected to have the majority of directors to reside in Cyprus and to hold Board Meetings in Cyprus .
Resident companies are subject to corporation tax at the rate of 10% which is the lowest corporate tax rate in the entire European Union.
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.
Double Taxation Treaties
Cyprus has concluded tax treaties with more than 40 countries worldwide. Apart from that, a Cyprus company, being an EU-based entity, is entitled to the benefits of the EU Parent-Subsidiary directive and the EU Interest and Royalty directive, under circumstances providing for withholding tax exemption for interest, dividends and royalty payments made by companies in other EU-member states to a Cyprus company.