Standard Admin / Sunday, March 24, 2024 / Categories: Old Blogs Cyprus Tax on the sale of commodities, securities, bonds and financial instruments Cyprus is a well established hub for international interest companies trading in securities and financial instruments; and there is a pretty good reason for it, taxation and setting up costs. Taxation To truly understand the great benefits of Cyprus Taxation o investment firms and simpler structures where a Cyprus entity is owned by an individual trading his own portfolio of many it is important to understand 3 main things! Dividends paid by the Cyprus investment firm to its shareholders are tax free at a company level and at an individual level are taxed when declared in the shareholders tax returns. Cyprus tax residents but non domiciled persons do not pay dividend tax (Article 1, Article 2) b) Distinction between commodities and securities Trading of securities are total tax free in Cyprus. As such if you trade company shares in any Stockmarket anywhere in the world this trading will be tax free. On the other hand if you are trading in commodities (exchanges currencies been on of them) then there will be tax at the normal Cyprus corporate level. c) Distinction between passive and active income Passive income must be clearly distinguished as different types of passive income is tax differently. Same applies for active income. Easiest way to overcome this is to firstly distinguish between active and passive income. Active income will be taxed as per the general rules; securities profits are tax free, commodities trading is taxed and so on. Passive income such as interest earned / yields / dividends received must be distinguished as their tax treatment varies; interest income is taxed whilst dividend income is not. Sometimes this distinction is not so straight forward as bundles of financial instruments paying out returns which is not clear whether they are dividends, interest or coupon payments. Tax Advice: If the amounts of such payouts is significant and it is extremely hard to distinguish the returns we suggest to obtain a tax ruling which will clarify the specific tax applicable. What happens to individuals who want to exploit in full the tax benefit? Number 1: They set up a Cyprus Company where they are the shareholders and directors and company secretary. Number 2: They become Cyprus tax residents so that they do not pay any dividend tax from the profits of their Cyprus Company Non Domiciled Article 1, Article 2, Article 3 So an individual from anywhere in the world, staying in Cyprus for at least 60 days (not consecutive) and living in any other country in the world less than 180 days can set up their Cyprus Company, make millions in dividend profits and pay zero tax on them. Over and above and as mentioned above, if the Cyprus Company is trading in securities or receiving dividend income from abroad then the entire operation is tax free at company level and corporate level! Previous Article Case Study - Discussion about Company Set up, Expenses, Non Dom, Fees etc Next Article Transfer Pricing Studies. Are they applicable in Cyprus? What is a transfer pricing study? Print 18 Rate this article: No rating Tags: cyprus taxationCyprus companydividend taxincome taxTax freeCompaniesTaxationtaxdividend income Please login or register to post comments.
Registered Address Provision Dear Mr. XXX, CYAUSE LTD correspondencecorrespondence addresscorrespondence with companycyprus company addressemail forwardinglimited company addressoffice addressregistered address 0
Registered Address Provision Dear Mr. XXX, CYAUSE LTD correspondencecorrespondence addresscorrespondence with companycyprus company addressemail forwardinglimited company addressoffice addressregistered address 0
Registered Address Provision Dear Mr. XXX, CYAUSE LTD correspondencecorrespondence addresscorrespondence with companycyprus company addressemail forwardinglimited company addressoffice addressregistered address 0
Setting up a new Cyprus Company - Fees Breakdown Dear Mr. XXX, CYAUSE LTD accounting information missing feescosts for cyprus companydisbursemnetsfee schedulehom muchincorporation costincorporation feesregistrationsetting up feestax registrationticvat 0
Real Client enquiry for Taking a New Established Company Dear Mr. XXX, CYAUSE LTD acquiring another companybuy cyprus companybuy limitedcompany acquisitioninvest in Cyprus companyinvestment in companylimited companypurchasepurchase cyprus companysell 0
EXISTING CLIENT NOT HAVING EXPENSE INVOICES Hi CYAUSE, CYAUSE LTD accountant enquiryaccounting information missingbookkeeping evidencecyprus companyinaccurate recordsincomplete accounting recordsincomplete recordsinvoicesmissing book keepingmissing evidencemissing invoicespoor accounting 0
Case Study - Discussion about Company Set up, Expenses, Non Dom, Fees etc Real Client Enquiries CYAUSE LTD 12.5%company taxcompany taxationcorporation taxCypruscyprus companycyprus company invoicingcyprus company taxcyprus eu relocationCyprus limited companiesdirectorshipsdividend taxdividend taxationexpenses cyprus companyinvoiceslimited company expenseslimited company invoicesmmanagement and controlnon domrelocate cyprusrelocate euservice company formationtaxtaxation 0
Real Client Enquiry - 60 Days Rule and how it applies to his personal circumstances Client Enquiry CYAUSE LTD 60 daysavoid dividend taxationcyprus companiescyprus dividend taxCyprus limited companiescyprus non domcyprus tax free dividendsdividend taxdividend tax for non domsdividend taxationlimited companynon domnon domicilednon domiciled personnondomnondomiciledreduce dividend taxrelocated to Cyprusrelocation to Cyprustax freetax free dividends 0
Incorporate in the Middle East or EU? Some Considerations Dear Friends, Clients and Colleagues, We are writing to inform you that we can now service our existing and new clients in the Middle East and the United Arab Emirates. CYAUSE LTD abu dhabiAEDcompaniescorporation taxDubaidubai taxfree lancefree zonesfreelancermainlandoffshoreonshorereduce taxationtaxuaeuae taxvat\ 0