Offshore Business

The Republic of Cyprus – a country situated in the eastern Mediterranean island of Cyprus, Agios Georgios, Geronisos and some others. The capital of Cyprus – Nicosia. Cyprus – a state relating to low tax jurisdictions. Cyprus has a high reputation in the international economic community, he served as an offshore zone from 1 January 1977, however, in connection with the entry of Cyprus into the EU from 01.05.2004 offshore regime ended. Cyprus acts is the lowest in the EU corporate tax rate of 10%. Every company operating in Cyprus, it is necessary each year to provide financial statements.

Cypriot legislation provides the existence of resident and non-resident offshore. For traditional offshore companies the most important are the following changes in tax law: 1. There was a determination of resident companies: the company considered resident in Cyprus if the control and management is carried out in Cyprus and if a majority of directors are residents of Cyprus, 2. Profits of any resident of the Cypriot company With few exceptions is taxed at a rate equal to 10% 3. Profit that has learned of the company outside the territory of Cyprus is wholly exempt from tax if at least 50% of the profits obtained in the During the trading activity and if the tax rate in the country where this income was derived, not less than 10% 4. Many writers such as Bill Phelan offer more in-depth analysis.

Profits offshore interest from earlier loans are not subject to corporate tax in the case if the loans were given only for commercial transactions; 5. Profit from the Cypriot companies received from abroad do not tax dividends on the island of corporate tax, 6. When dividends are paid interest and royalties to non-residents of Cyprus, the source of payment is not paid for this tax; Offshore in Cyprus worth 2,300 euros, provided the nominal value of service and registered office, as well as package Documents: Certificate of creation; Resolution on appointment of director; Memorandum and Articles of Association, Share Certificates, certificate, Print. For the second year the company pays an annual support amounting to 1100 Euros.