Analyzing Cyprus Tax Benefits: Details Of Corporate Tax And More

Many business enthusiasts are already sitting with their own legal and corporate counsel and are discussing the potential corporate tax benefits in Cyprus they will enjoy. The year 2004 paved way a new era in the history of Cyprus as it has been accepted as one of the members of the elite group of the European Union. Its membership in the organization meant so many positive things for the country and interesting business opportunities for those looking for efficient manners on how they could expand their business across Asia, Africa, and Europe.

The Lowest Corporate Tax Rate among EU Members

It is true. The corporate tax rate in Cyprus is only 10%, the lowest among all EU members, even in comparison with non-offshore jurisdictions in Europe. It is perfect opportunity to save more because you will not be robbed of precious revenue earnings due to government implemented tax obligations.

Helpful Tax Authorities in Cyprus

The tax authorities of Cyprus will be more than willing to assist you with queries pertaining to your tax calculations. They may not do the preparation for you, but they are extremely helpful in guiding you with your financial issues. Generally, you will have to hire the services of efficient accounting and legal firm for corporate and administration assistance. They may be able to give you a list of qualified firms offering these services to guarantee you will not choose anything phony lurking in the online community.

Exemption of Foreign Invoices from Tax Calculation

Most offshore companies registered in Cyprus perform foreign tax transactions allowing them to earn additional profit. In these instances, Cyprus will not implement tax obligations on your corporation, so long as these transactions do not directly involve participation from your Cyprus central office. If you have further queries, pertaining to this then your expert legal and accounting counsel will be able to provide answers and ample recommendations on how your tax payments can be reduced.

Tax Exemption for the Disposal of Securities

You may wish to boost your companies trading activity by selling some of your securities. Other countries would consider this a taxable activity, but the Cyprus government understands it is not yet to be deducted because you will benefit more by utilizing the funds gained from this transaction to expand your business to wider reach.

EU VAT Advantage in Cyprus

Many business owners smirk at the idea of EU VAT, but deciding to register your company in Cyprus will give you a dozen of monetary benefits you could barely feel the hurt of tax payment you are obligated to fulfill to the EU.

Tax Exemption for Reorganization Activities

You and your partner may decide to merge or restructure your company in the future. This may give you potential gain in the future, but not at the present time. Due to this, Cyprus laws consider this another non-taxable activity giving you lesser worries concerning additional tax obligations you may need to fulfill.
The friendly Cyprus Taxation Rules remains the major reason why more investors have gained interest of Cyprus. It should not come as a surprise to anyone in the financial industry because all of the above mentioned tax benefits are too attractive to resist. You know you the country has constructed the perfect rules that will motivate you to stay and enjoy investing in its midst. Start planning your IBC in Cyprus. Sit down on it today with corporate and legal counsel and begin your dream of becoming a successful entrepreneur.
Carl Marquez is a dedicated financial analyst. He has written several articles pertaining to Cyprus Taxes and hopes to improve his knowledge of this matter in the years to come.