ABOUT SERVICES CYPRUS COMPANY INVESTMENT PROGRAMMES UAE DESK MEDIA CONTACT PAY NOW Tax Advantages of Cyprus Companies CYPRUS COMPANY Taxable and non-taxable entities Taxation of transactions in shares and other securities Taxation of dividends Taxation of interest income EU parent-subsidiary directive EU interest and royalty directive Other provisions of the Cyprus tax law A company is considered to be a tax resident of Cyprus if it is "managed and controlled" in Cyprus. Although no definition of management and control is provided in the tax law itself, this is generally accepted as being the place where board decisions are taken and where the directors reside. Consequently, for a company to be managed and controlled in Cyprus we would expect to see resident directors and regular board meetings being held in Cyprus. A company that is incorporated in a foreign country is considered to be tax resident in Cyprus if managed and controlled in Cyprus. Similarly, it is possible to incorporate companies in Cyprus that are non-resident for Cyprus tax purposes. Non-resident companies i.e. entities not managed and controlled in Cyprus are not subject to taxation in Cyprus unless they have a permanent establishment in the island. Where they have such an establishment, they are taxed only on that income that arises from the activities of that establishment. Such companies cannot take advantage of the Cyprus network of double tax treaties and are therefore used mainly for trading activities where treaty benefits are not required. The reputation of Cyprus as a top quality financial centre with highly developed banking, legal and accountancy professions gives a non-resident Cyprus company a clear advantage over known offshore jurisdictions which are often viewed with suspicion or mistrust. Resident companies are subject to Cyprus corporation tax at the rate of 12.5 percent. This is the lowest corporate tax rate in the EU. Dividends, interest, royalties and profits realised for sale of securities are subject to special tax treatment. Request more info ABOUT | SERVICES | CYPRUS COMPANY | INVESTMENT PROGRAMMES | UAE DESK | CAREERS | MEDIA | CONTACT | TERMS & CONDITIONS | PRIVACY POLICY Sitemap | © Copyright, All Rights Reserved. | Designed & Developed by Dot.Cy