Belize and Cyprus setup taxes

[celizo]

Hello,

In regards the taxation of a setup with a Belize holding + Cyprus company, what is the taxation if the Cyprus company acts on behalf the offshore holding in Belize?
12.5% are applied on:
1/ the payment service offered by the cyprus company to the Belize company (for instance with a service fee defined in an agreement)
2/ the global benefits (payments received through cards processors, Paypal…. less charges, external invoices… etc) ?

 

[Elve]

I suppose it is Option 1. The Cypriot company as agent pays a tax on the commission received (as defined in the agreement) to carry out the principal's business operations (offshore company).

 

[Spinat]

You mean you setup the Belize Holding company to own 100% of the shares in the Cyprus company right?

In that way it would not make sense to invoice the BZ Holding company but just take out the money as dividente each year which would be tax free.

 

[celizo]

I've read this thread:
https://www.offshorecorptalk.com/threads/how-to-optimize-cyprus-corporate-taxes.23957/"...if you make 100K, bill 80-85K from UAE (as yourself, contractor, and your company for licensing fees) and leave like 15-20K to be taxed on in Cyprus."

In this case, it's option 2.
Why do not use a holding in this case too in order to have no taxation?

For instance, my BZ company offers digital services, and I will need card processors, EMI, Paypal (personal european clients, no businesses).
If my BZ company (holding) ownes 100% of the shares in the Cyprus company:
a/ is it possible to open Paypal, Stripe… ?
b/ all the benefits are tax free in Cyprus if 100% remitted to the holding in Belize?
c/ Cyprus company will be considered as "trading company"?

 

[celizo]

Hi,

Amid members here who use an offshore + cyprus company, please could you confirm if I will be able to use my Belize company as holding + cyprus with no taxation (option 1) as specified in previouses messages?
I cannot find this specific answer in the forum.
Thanks in advance.