Money management is a skill that is honed to perfection. Those who manage to learn its secrets end up enjoying bountiful revenue from established companies they have incorporated in various countries in the world. If you wish to cut the discovery trail short, then begin by learning the Cyprus Tax Planning benefits and how it led many businesspersons to higher revenue.
Comparatively Low Corporate Tax Rate
The 10% corporate tax rate is not typical among the European Union members, but Cyprus has remained true to its goal of becoming the ultimate business hub for international investors by sticking to its 10% corporate tax rate. This could even be lowered by using certain laws on investment and incorporation guidelines known to expert corporate and legal counsels that you can hire in Cyprus.
Inviting Tax Incentives
The year 2002 is another good year for the Cyprus tax planning as the House of Parliament approved and passed the recommended tax reform legislation, removing the discrimination on taxes applied to offshore companies. This paved way to more ideal reasons for it to become a suited place for outbound and inbound EU investors. This is a short list of the amended tax legislation benefits:
- Extensive double tax treaty network involving more than 49 countries resulting in possible 0% tax rate in certain transactions
- Exemption from tax gained from security transfer or sales
- Dividends, royalties, and interest tax rates exemption, in accordance with the guidelines set by the Government
- Exemption from profits gained from a permanent establishment abroad
- Donations given to charitable organizations are to be deducted from their tax payment calculation
- Losses can be carried forward so long as the company is a registered Cyprus tax resident
- Reorganizations affecting the capital amount like mergers, exchange of shares, partial divisions, demergers, exchange of shares, and transfer of registered office do not imply any tax consequences for the offshore companies in Cyprus
The more tax deductions can be carried over so long, as you have a licensed and certified tax accountant assisting you with these preparations.
The Perfect Vehicle for Investment in Africa, Russia, Asia, and Europe
After the acceptance of Cyprus as a member of the European Union, it has sealed its destiny to become a center of financial business transaction in Europe, Russia, and Africa. It is a geographical gift bestowed to the island during ancient times, but this time around, it is the reward for the strong commitment of its government to help the Cyprus economy rise to the top. In the year 2000 alone, the economy of the country received $374.7 million of investment from its $225.2 million investment in the year 1999. These investors speak of a primary reason why they did not hesitate to proceed with company registration and investment in the region. The freedom to directly invest and the friendly tax authorities and guidelines were sufficient to convince them and this is also the reason that makes more companies aspire to be listed as one of the country’s registered IBC.
Professional and Honest Services by Cyprus Work Force
With almost 50% of the citizens having tertiary education, Cyprus has a wide pool of highly skilled professionals that offers honest and reliable services. Most of these have graduated from prominent schools in Europe and are members of the United Kingdom Inns of Court, which are evidence they are well versed in international commercial law. Moreover, the Certified Accountants strictly adhere to International Accounting Standards providing assurance you are assisted by the best professionals in the region.
About the Author: Oliver Sayson is a student of International Commercial Law in Cyprus. He enjoys writing abou the tax planning benefits in Cyprus and sharing information about recent tax incentive developments in the country.