Tax for defenses, what is that?

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James Spader

Forum Moderator
Staff member
Defence tax at 10% is charged on the following cases:





(a) If the company is Cyprus tax resident – there is a 10% defence tax ( withholding tax) on interest receivable


(b) Dividends receivable from abroad are in general not subject to defence tax, but there is one exemption


© There is no defence tax on trading profits.
 

Moh1

Corporate Services
Admin said:
Defence tax at 10% is charged on the following cases:



(a) If the company is Cyprus tax resident – there is a 10% defence tax ( withholding tax) on interest receivable


(b) Dividends receivable from abroad are in general not subject to defence tax, but there is one exemption


© There is no defence tax on trading profits.
Thanks, I wasn't aware of this defence tax but think it is the same as the regular TAX you have to pay if you incorporate your Cyprus company as a national company.
 

webdriller

Corporate Services
Silver Member
Business Angel
If you incorporate as an IBC you can avoid the TAX which means you are subject to 0% tax, this requires only that you aren't doing any business within Cyprus and you have foreigner as shareholders and directors.
 
S

SysOp

@clemens


Yes thats true, you won't pay any tax if your Cyprus company is registered as an IBC and if your business is outside of Cyprus!
 

jb100

Corporate Services
Business Angel
Very happy to know that,there is no defense tax on trading profits in Cyprus.For a trading/investment company,no tax is payable in Cyprus as a result of which trading margin will be higher.So more and more new trading companies are going to be established in Cyprus.But we should realize that defense expenditure is quite essential to maintain the dignity and sovereignty of any country .So one should be ready to pay for the best interest of the nation.
 

clemens

Corporate Services
Mentor Group Gold
LoL you Guys opened an almost 7 years old thread. I think I figured out how all this Works with my empire of offshore corps all is fine ;)
 

negon

hannibal the cannibal
BANNED MEMBER
It's not useless to have a Cyprus company if some is looking for incororating their business in Europe in order to do business here! Accounting is not difficult for a Cyprus company you can even let your agent do all the work and just sit back and do business.
 
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