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International Business
In recent years Cyprus has been voted the most attractive European tax regime by major business organizations across Europe. Cyprus has been commended for the stability of its tax law, the consistency in interpreting its tax legislation and its low tax rates.
As the member of the European Union since 2004 and adoption of the Euro from 1 January 2008, Cyprus has entered a new era as an economy offering a great number of advantages within a common European market. In 2009 the OECD included Cyprus on its "white list" as one of only 40 countries in the world that have substantially implemented internationally agreed tax standards, being the highest categorization possible.
Key advantages of the Cyprus tax system include the following, to name but a few:
- Cyprus has a corporate income tax rate of 10% and a standard VAT rate of 15% - both of which are the lowest in the European Union.
- Cyprus boasts an extensive network of double tax treaties, currently with approximately 45 countries.
- Exemptions from tax:
- Most dividend income received;
- Profits of most foreign branches of Cypriot companies;
- Profits from the disposal of shares as well as bonds and debentures and many other securities;
- No tax on capital gains from sale of property outside Cyprus.
- No withholding tax on:
- Dividends paid to non-resident shareholders;
- Interest and most royalties paid from Cyprus.
- The Cyprus tax legislation and its regulation is stable and straight forward.
- Relations between the business community and the tax authorities are excellent and ensure the efficient taxation of the commercial and financial sector.
Deloitte can assist with all aspects of conducting business in Cyprus.
Our Tax and Legal team can advise on tax efficient structures and our Integrated Services team can assist with the on-going administration and management of your entity as well as payroll and bookkeeping services. In addition Deloitte can arrange for the formation of a Cyprus company, partnership or trust.
Read more
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