Cyprus is a very valuable destination for many companies and businesses around the world. This is because it has the ability to offer great international tax optimization and Cyprus corporate tax schemes which really go a long way in helping various businesses get the most out of the revenue and income that they generate.
Cyprus taxation is the main reason why Cyprus is such a valuable asset. As opposed to the taxation schemes in other areas of Europe and even the world, Cyprus is a gem since it has quite stable taxation levels and it also has the highest levels of taxpayer satisfaction. It has even been rated as more desirable than other tax havens such as Switzerland and Luxembourg.
A business or a company that is looking for a good tax haven can definitely find a great one in the form of Cyprus. This is all thanks to the very good tax planning scheme in Cyprus.
What exactly are the Cyprus corporate tax benefits that Cyprus registered companies enjoy? Here is a list:
- Cyprus is a member of the EU, which means that companies which are based in the area will get the benefits of being connected with the confederation of the 27 member states.
- It offers a very favorable low-taxation regime, which is obviously very well desired by everyone in the business world
- It facilitates, through the Cyprus tax scheme, many favorable arrangements for business within Cyprus and even ones that are foreign.
- There is a low corporate income tax of 10% which is in fact the lowest rate in the European region.
- There is a very generous arrangement on income deductibility which stipulates that all of the expenses that were dedicated solely to the production of the income received by the company is in effect deducted before the tax payables are computed.
- The losses which are incurred by one Cyprus based company can be carried forward indefinitely. This just means that the losses suffered by one company can be set off using the profits of either the same company, or a fellow company in a group.
- The disposal of securities done by either a private or public company that is recognized as a Cypriot based one is considered as exempt from Cyprus taxes.
- There is no withholding tax implemented on the dividends paid by a Cyprus based company to an outside and foreign non resident shareholder.
- The dividends received by a Cyprus based company and which are provided by an outside source or foreign subsidiary are effectively exempted from corporation tax.
- Capital gains taxation is not implemented in the event of the disposal of an immovable property held outside Cyprus. Likewise, shares in a company which involves immovable property are also exempt as well.
With all of these numerous benefits Cyprus tax planning offers, there is really no doubt why it is one of the most highly acclaimed places in Europe which is deemed one of the safest tax havens by business all over.