I read that a non resident company in Cyprus don't have to pay any tax, but at the same time I read from the Cyprus tax government site Government Web Portal - Areas of Interest that a resident company has to pay 10% tax, so how do I go about it if I want the company to be non resident?
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When does a Cyprus Company have to pay tax?
- Thread starter Spinat
- Start date
I have moved the thread to the correct forum.
We have 2 types of Cyprus companies, as far as their tax status is concerned. These are:
(a) A Cyprus resident company which is taxed at 10% on its profits.
(b) A Cyprus non-resident company which is not taxed.
The place where management and control of the company is exercised determines the residence status of the company. If the majority of the company Directors are Cypriots, then it can be assumed that decisions are taken in Cyprus and the company is Cyprus resident. This is why we use Cypriot nominee directors.
A Cyprus resident pays 10% tax, can get Cyprus Tax Resident Certificate and can distribute to its shareholders all remaining profits without any withholding taxes. Also the company can take advantage of more than 40 double tax treaties that Cyprus signed with various countries. It can get a VAT Registration number.
A Cyprus non-resident company, pays no taxes, but it cannot take advantage of the double tax treaties network and cannot get a Cyprus Tax Resident Certificate. It cannot get a VAT Registration number.
Registered Office must be in Cyprus since it is a Cyprus company. It cannot be anywhere else (any other country)
We have 2 types of Cyprus companies, as far as their tax status is concerned. These are:
(a) A Cyprus resident company which is taxed at 10% on its profits.
(b) A Cyprus non-resident company which is not taxed.
The place where management and control of the company is exercised determines the residence status of the company. If the majority of the company Directors are Cypriots, then it can be assumed that decisions are taken in Cyprus and the company is Cyprus resident. This is why we use Cypriot nominee directors.
A Cyprus resident pays 10% tax, can get Cyprus Tax Resident Certificate and can distribute to its shareholders all remaining profits without any withholding taxes. Also the company can take advantage of more than 40 double tax treaties that Cyprus signed with various countries. It can get a VAT Registration number.
A Cyprus non-resident company, pays no taxes, but it cannot take advantage of the double tax treaties network and cannot get a Cyprus Tax Resident Certificate. It cannot get a VAT Registration number.
Registered Office must be in Cyprus since it is a Cyprus company. It cannot be anywhere else (any other country)
has been a long time since my last visit I had personal health problems:hello:
You are correct. Though resident company have to pay 10% tax of net profit, it is better than non resident company. Because, 10% tax open the door of many advantages.
Btw tax percentage already increased in Cyprus recently
Can
Can you update us on increased tax percentage in Cyprus now?You are correct. Though resident company have to pay 10% tax of net profit, it is better than non resident company. Because, 10% tax open the door of many advantages.
Btw tax percentage already increased in Cyprus recently
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