ADVANTAGES FOR CYPRUS OFFSHORE COMPANIES

The main advantages enjoyed by the offshore companies in Cyprus are:

Income tax

Income tax is imposed on worldwide income from trade and investment activities after deducting all expenses including interest, at the rate of 10%. Dividends receivable are not taxable.

Double taxation treaties

Cyprus offshore companies qualify for the avoidance of double taxation on income earned in any of the countries with which Cyprus has a double taxation treaty. It covers payments of:

-       dividend

-       interest

-       royalties

for which a credit is usually allowed for tax levied at source by one country against the tax levied by the other treaty country. As a result the taxpayer pays no more than the higher of the two rates.

Estate duty

The inheritance of shares in a Cyprus offshore company is fully exempt from estate duty.

Capital gains tax

Except on the sale of immovable property situated in Cyprus an offshore company is fully exempt from capital gain tax.

Dividends

No withholding tax on dividends paid by a Cyprus offshore company.

Stamp duty

Contracts entered into by Cyprus offshore companies are fully exempt from stamp duty.

Exchange control

There are no exchange control restrictions regarding the movement of funds to and from bank accounts belonging to offshore companies.

Secrecy

The laws and regulations governing the establishment and operation of Cyprus offshore companies prohibit the disclosure of any confidential information by any government office, commercial bank and professional, such as the identity of the beneficial owner of an offshore company.

Anonymity

In connection with the secrecy laws and regulations mentioned above, with the use of nominee shareholders, an investor could retain its anonymity as the beneficial shareholder of a Cyprus offshore company.

Membership

Cyprus offshore companies like any other local company registered in Cyprus, can become full member of any local association or organization like the Cyprus Chamber of Commerce and Industry etc.