A number of factors have made it possible for Cyprus to being one of the most popular business hubs for thousands of people around the world. The first thing is the tax planning opportunity that Cyprus provides you with. Cyprus has the lowest corporate tax in Europe, which is taxed at 10 percent rate on net profits alone. Every Cyprus Company uses this rate as their corporate income tax. Dividends that are received from a resident Cyprus tax company are exempted from any further tax if you are not resident in Cyprus. Dividends paid from a foreign company are taxed exempted if the company paying is not engaged directly or indirectly in any activity that leads to non-trading income. Or if the tax burden on the company’s income is not lower than that of Cyprus.
What you should bear in mind when you go with a company formation in Cyprus is management and control of your company. A Cyprus Company will benefit from the Cyprus beneficial tax regime only if it is managed and control from within Cyprus. A company to be treated as a Cyprus tax resident, should have local directors . Normally, merely incorporating your company in Cyprus will not be enough. A Cyprus offshore company that is incorporated should be managed and controlled from within Cyprus. Thus, the Cyprus Tax Authorities will only register a Cyprus company if the majority of its directors are local directors. You can experience these benefits, if you choose to start up a business in Cyprus. Visit a Cyprus law firm and know what goes on, from start to the last.