Cyprus
Key Corporate Information
1 Corporate
Tax Rate
12.50%
As above
2 Substance
Requirements
The management and control of the company must be exercised in Cyprus in order for the Company to be tax resident in Cyprus. The Directors must be qualified
3 Withholding
Tax
- No WHT on either dividends or interest paid out of Cyprus to non-Cyprus tax resident entities or individuals
- No WHT on royalties paid to non-residents of Cyprus for rights not used within Cyprus
- Royalties earned on rights used within Cyprus are subject to WHT of 10%
- DTT’s need to be consulted in order to determine the WHT on a case per case basis
4 Participation
Holding Exemption
Tax exemption of foreign dividend income
5 Number of Double
Taxation Treaties
More than 60
6 Time to
Establish Company
3 working days
7 Audit
Requirement
Audit is required
8 Filing
Requirements
Financial statements of the company must be filed annually
9 Stamp Duty on
Transfer of Shares
No Stamp Duty
10 Shareholder Information
Publicly Available
No
11 Other
Beneficial Factors
Notional Interest Deduction – Corporate taxation rate can be further reduced. A corporation could achieve an effective tax rate of 2.5%
Exempt income – The following source of income (subject to conditions) are exempt from corporate income tax:
- Dividend Income
- Interest income, excluding income arising in the ordinary course of business which is taxed under corporation tax
- Foreign Exchange (FX) gains with one exception
- Trading in foreign currencies and related derivatives
- Gains arising from the disposal of Securities