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Taxation
While Cyprus tax system has been reformed to comply with the EU Acquis Communautaire, the appropriate actions have taken place to maintain Cyprus’s competitiveness as an international business centre and enhance its attractiveness as a suitable jurisdiction for holding companies.
Double Taxation Agreements
Cyprus has developed a wide network of Double Tax agreements with 45 countries; ensuring that the same income is not taxed in more than one country.
Moreover, Cyprus is in the stage of negotiating the conclusion or awaiting ratification of Double Taxation Agreements with several other countries.
Special Tax Treatment
Shipping Companies
Cyprus is considered as one of the most competitive shipping centres in the world in terms of registration fees and taxes.
No tax is imposed on profits from the operation of Cypriot registered vessels, or on dividends received from a ship-owning company.
Income arising from ship management activities is subject to tax at 4,25%. ...
Corporate tax
All companies are subject to a uniform tax rate of 10%, the lowest corporate tax rate in the European Union.
Moreover, various tax exemptions apply for corporate tax such as:
exemptions in respect of dividends received from other companies
exemption in respect of interest income under special conditions
...
Personal Income Tax
Based on Eurostat's latest statistics (May 2006), Cyprus does not only exhibit the lowest corporate tax rate, but also one of the lowest top statutory personal income tax rate at 30%. Moreover, various tax exemptions apply for personal income tax as well, such as:
exemptions in respect of dividends subject to certain conditions
no tax on interest income subject ...
Value Added Tax
Value Added Tax (VAT) rate is imposed on the supplies of goods and services, as well as on imports to Cyprus.
The standard VAT rate of 17% applies to Cyprus; the lowest rate permitted in the EU. Cyprus also applies reduced VAT rates, on specific goods and services, of:
8%
5%
0%
Company Registration
254,227 total registered companies in 2011 in Cyprus with 19,538 new registered companies in the Registrar of Companies and Official Receiver.
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