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Tax for defenses, what is that?

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.
 
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.
 
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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.
 
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.
 
Useless maybe, depends on who need it ;)
 
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.