Lets say we have Company A incorporated in Cyprus. It generates a profits and pays the 12.5% corporate tax.
Company A is owned by Company B, which is incorporated in another European country, which has a double tax treaty with Cyprus.
Company A pays dividends to Company B.
How should the dividends be taxed in Company B?
The corporate tax rate is 20% in the incorporation country of Company B, does that mean that it will be 7.5% additional tax which has to be paid, or would it be the total 20% ?
Company A is owned by Company B, which is incorporated in another European country, which has a double tax treaty with Cyprus.
Company A pays dividends to Company B.
How should the dividends be taxed in Company B?
The corporate tax rate is 20% in the incorporation country of Company B, does that mean that it will be 7.5% additional tax which has to be paid, or would it be the total 20% ?
