Tax on Dividends to another EU company from CY company

[jobe92]

Hi,

I have a company registered in Cyprus. I would like to move the money to another new EU company. My idea was to set the other EU company as owner of the Cyprus company then transfer the dividends.
Is that possible, and would tax have to be paid on the dividends in the new company? There has already been paid tax on the profits in the Cyprus company.

I would eventually like to put most of the money into cryptocurrency investments in the new company. So could the entire transfer of funds to the other EU company then to an exchange just be skipped and put the money directly into a crypto exchange through the Cyprus company instead, and then send the money to a cryptocurrency account owned by the new company?
I would like of course like the new company to be owner of the cryptos, so any profits, etc. will belong to the new company.

I hope it makes sense, and someone can come with some advice.

 

[blockchain4ever]

No witholding tax will be paid in Cyprus as per the EU parent-subsidiary directive, but corporate tax will be paid. In most jurisdictions, no tax will be paid by the parent company on dividends (google holding regime).

 

[jobe92]

Thank you for your response @blockchain4ever .
Do you know anything about corporate cryptocurrency investments, is that considering legal, or is there laws restricting that?
More specifically I would like to put most of the money as stake into a proof-of-stake coin, and earn "return of stake" on them, for example Cardano and NEO.

 

[Helkins]

Thank you for your response @blockchain4ever .
Do you know anything about corporate cryptocurrency investments, is that considering legal, or is there laws restricting that?
More specifically I would like to put most of the money as stake into a proof-of-stake coin, and earn "return of stake" on them, for example Cardano and NEO.

I don't think you'll face issues with legality but make sure all is in order when it comes to your documents and that all of the crypto transfers check out in case of an audit, also make sure you bank is fine with you making crypto investments and getting the money from POS because they can drop you as a client without notice due to their bs internal rules.

 

[JohnLocke]

You will want to check with the applicable tax laws in the country to where you want to transfer the money to and buy cryptocurrencies.