Tax Advantages of Cypriot companies

• Dividends received from abroad are completely exempted from income tax.

• Lower withholding tax rate in other countries on remittances of income resulting from dividends, royalties, or interest due to the applicability of Double Taxation Treaties.

• Dividends (including payments of interest or royalties) paid to non-resident shareholders are not subject to any withhol ... Read More »

Tax treatment of dividends in Cyprus

Income Tax Law (L.118(I)/2002, as amended)

Dividend income accrued or arising to any person (company or individual) which is resident in Cyprus for income tax purposes, whether the said income derives from sources in Cyprus or outside Cyprus, is exempt from income tax, in accordance with section 8(20) of the Income Tax Law.

A company is considered to be resident in Cyprus for tax purposes, if its management and co ... Read More »

Tax Treatment of Royalties in Cyprus

Companies engaged in the development of intellectual property rights and the subsequent licensing of these rights and the collection of royalties must always consider which is the best investment structure which among other factors have the least tax leakage.

Cyprus has positioned itself among the best tax planning jurisdictions to establish a company.

As such this company will receive ... Read More »

Mutual Funds in Cyprus

The recent changes in the Cypriot Income Tax Law and Special Contribution for the Defence Law definitely open a new era for Mutual Funds in Cyprus.  These are effective as from the tax year 2009.

Changes Regarding Dividends

As the Law stands now, dividend income is exempt from income tax.  An exemption from Special Contribution for the ... Read More »

Tax on Interest Income in Cyprus

Interest income is of two kinds:

The first kind is interest income earned outside the ordinary course of a person’s business.
The second kind, as defined by the relevant Cypriot Law, is interest that is gained by a person from the ordinary business activities, including interest deemed to be closely connected with the business activities as well as interest which arises from mutual fund investments.
The two kinds wo ... Read More »

The Cyprus-Russia Double Taxation Agreement- PROTOCOL 16.4.2009

In October 2008, a Russian Delegation came to Cyprus with a proposal for amendments of the existing Double Taxation Treaty between Cyprus and Russia.

One of the main proposals was the adoption of Article 26 of the OECD on the exchange of information during 2008. Various meetings were held in negotiating this issue and finally on 16.4.2009, the two sides signed a Protocol to the existing treaty.  The signing of the Protocol ... Read More »

THE MERCHANT SHIPPING (FEES & TAXING PROVISIONS) LAW OF 2010

• New Cyprus Tonnage Tax Scheme
• Improving the competitiveness of Cyprus Ship-owners
• Charterers and Ship Managers.

The new Law which has recently passed and is expected to be effective as from 1.1.10 upon the Council of Ministers approval repeals and replaces the Merchant Shipping (Fees & Taxing Provisions) Law of 1992-200 ... Read More »