Tax Strategy for individuals & Companies Tax Strategy for individuals & Companies Kyriakos Tramountanellis x / Friday, July 15, 2022 0 88 Article rating: No rating In this article we are exploring several ways to optimize your Tax Strategy. Whether a Stand-Alone Business, a Group, or a High Net Worth Individual (HNWI). Read more
CYAUSE Plan for Cyprus on how to recover Covid-19 Crisis CYAUSE Plan for Cyprus on how to recover Covid-19 Crisis Kyriakos Tramountanellis x / Tuesday, July 12, 2022 0 73 Article rating: No rating In this short article we are explaining how Cyprus economy can recover Covid-19 crisis. Read more
Procedure for Trading in Cyprus Procedure for Trading in Cyprus Kyriakos Tramountanellis x / Tuesday, July 12, 2022 0 77 Article rating: No rating There are two ways you can trade in Cyprus; as a physical person or as a Company. Each option has its own distinct characteristics, tax benefits and different legal protection however you can if you decide to trade in these simple steps Read more
SME - Innovation Vouchers Programme Budget up to €1.7M SME - Innovation Vouchers Programme Budget up to €1.7M Kyriakos Tramountanellis x / Monday, July 11, 2022 0 67 Article rating: No rating The Research and Innovation Foundation (RIF) announced the new Call for Proposals of the «Innovation Vouchers» Programme, the budget is up to €1.7M Read more
Cyprus Funds Cyprus Funds Kyriakos Tramountanellis x / Friday, June 24, 2022 0 83 Article rating: No rating Cyprus Funds, a detailed analysis of why is so Popular in Cyprus. Read more
Tax Free Dividends - Cyprus Companies Share Written By Kyriakos Tramountanellis Tags avoidcontrolCypruscyprus companiesdirectordirectorshipdividend taxdividend taxationdomiciledfree dividendslimitedlimited companiesmanagementnon domownerresidentshareholderspecial defence taxtaxestaxfree 2022-01-04 Yes, you have heard it right. You can enjoy tax free dividends owing directly a Cyprus company in the following two cases: 1. Management and Control is exercised in a tax free jurisdiction A main principal for the taxation of Cyprus companies is the management and control rule. This tax law stipulates that the place management and control is exercised, it defines the tax jurisdiction of the company and the place the company will be taxed. Consequently all Cyprus companies must be managed and controlled by local directors only or by majority of local directors (in the event an overseas / investor / shareholders wants to participate in the composition of the board) to be taxed at the Cyprus Corporation Rate of 12.5%. Therefore, a Cyprus company managed by an overseas individual (this person is a director on the company), effectively manages and control the Cyprus company at his / her place of tax residency. If the place of tax residency is a tax free zone or jurisdiction like Dubai or BVi then this Cyprus company even though established / created in Cyprus it will not be paying any taxes in Cyprus as its management and control is outside Cyprus. 2. Shareholders of Cyprus companies who are Cyprus Tax Residents but non domiciled or are tax residents overseas Dividends paid by Cyprus companies to its shareholders are tax free at the company level and are taxed at the personal level by the Cyprus dividend tax (which is called special defence tax). This tax does not apply if the shareholders of the Cyprus company are Cyprus Tax Residents but are not domiciled in Cyprus (see related articles for the non dom tax status). In fact all their worldwide income will be tax free at the Cyprus level (some overseas jurisdictions may deduct dividend taxes at source; when dividends are paid). On the other hand, in the event the shareholders of Cyprus companies are overseas tax residents they will be subject to overseas tax at their place of tax residency only. The Cyprus company will pay them dividends free of tax and when reported in their personal tax returns maybe subject to local dividend taxes, again at personal level. In Summary: Shareholders of Cyprus Companies are taxed depending on their tax status as follows: - Cyprus Tax Residents, Non Domiciled in Cyprus —-> Worldwide Tax Free Dividends - Overseas Tax Residents —-> Subject to dividend tax in their country of tax residency - Cyprus Tax Residents, domiciled in Cyprus (i.e Cypriots) ---> Are taxed by the dividend tax (special defense tax) at the enforcable rate at the time of the dividend payout. Want to know more about Cyprus Taxes and possibly relocating to Cyprus? See how salaries, dividends, corproratino tax is calculated using our Cyprus Tax Calculators Watch our Youtube Channel with Cyprus Corporate and Tax Tips and playlist exclusivly for relocation material Read all there is to know on this section of our website Contact us and we will be more than happy to assist you Thank you, Kyriakos