International Tax Planning |

With Cyprus accession into the European Union, its tax legislation has changed in order to come in line with EU requirements and comply with the European Aquis, the European Union law and the European Union code of conduct.
Furthermore it abides by Cyprus' commitment to the OECD to eliminate harmful tax competition OECD initiatives against harmful tax practices.
Consequently on 1st January 2003, the tax system in Cyprus underwent some major reforms, even though some of which temporarily weakened the country’s economy.
Cyprus has a very advanced tax planning culture as it combines the low or zero in certain cases tax rates and the extensive double taxation treaties network. The continues efforts by the government of Cyprus to expand its network of double taxation agreements with negotiations with new countries for new and updated tax treaties with existing one’s has established Cypriot companies as an essential part in a large international structures.
Cyprus has fixed corporate tax rate (12.5%), a very competitive V.A.T. rate (19%) and all the additional benefit provided by the Cyprus tax law in relation to Dividends, Interest and Royalties making Cyprus companies more attractive in the following tax planning structures:
  • A Holding Company
  • A Trust Company
  • A Finance vehicle Company in order to finance other corporate entities
  • A Trading Company
  • A Royalty Company
 

Our firm focus on providing high quality tax advices to the clients on complex issues in the area of taxation, focusing on the optimal tax structuring, while serving the clients operating needs