Real Client enquiry: Taxation related questions

Client:

Hello,

I have an inquiry from your article:

https://www.cyprusaccountants.com.cy/Reduce-Taxation/Tax-Free-Income

If I have a Marshall Islands company and account and do consulting globally but reside in Cyprus, do I have to declare earnings in Cyprus?

Would I need to pay income tax or coorporate tax in Cyprus and how much? 

Kind Regards,

CYAUSE team response:

Hello and thank you for your email!

Strictly speaking yes, at 12,5% Corporation Tax and 17% dividend tax unless you are a Cyprus non domiciled, in which case dividend tax is waived!

Kindly advice next steps! 

Client response:

Hello CYAUSE team,

Why would I pay dividend tax? 

The taxation of dividends in Cyprus for a holding company depends on the country of residence of the payer. This way, according to the EU Parent-Subsidiary Directive, if a shareholder receives dividends from a company established in an EU country - aka Cyprus - the dividends will be received by the shareholder free of any withholding taxes. 

If I receive dividends from Dubai to a Marshall company and I am resident of Cyprus, do I pay dividend tax? Do we have a double tax treaty with UAE? 

My situation is that I will be receiving dividends or capital gains from a sale of a company in the future either from a Cyprus company or Dubai. Do I want to receive this to Marshall islands company or a Cyprus company to have the benefits of not paying tax on my earnings? 

Kind Regards,

CYAUSE team response:

Dear Client,

Your enquiry is specific and needs to be thoroughly reviewed. We are more than happy to assist you for a fee of Euro 350 + VAT (from 400 plus VAT) either via email or by telephone until all issues and concerns you may have are resolved.

If you are in agreement let us know to co-ordinate accordingly.

Thank you in advance,