If you’re considering registering a Cyprus company, you probably have questions about tax laws. You might wonder if your Cypriot company has to pay tax, and if you’ll be able to benefit from double tax treaties. You might also wonder, in the case of a dispute, in which country will the resolution be handled?
Does a Cyprus Company pay tax?
Whether or not your Cyprus company is subject to taxes depends on how you register the company. If you use Cypriot nominee shareholders and directors, your company will pay 12.5 percent tax on its net profits. Appointing Cypriot nominee shareholders and directors is helpful in cases when a company will be doing business in Cyprus. On the other hand, if you use foreign nominee shareholders and directors in your company, and all income is coming from outside of Cyprus, you will not be subject to any tax.
Will My Cyprus Company Have Access to Double Tax Treaties?
To benefit from double tax treaties, your country must have a double tax agreement with Cyprus. The beneficial owner is subject to the tax in their home country, which is why many people choose to register their companies anonymously by appointing a foreign nominee shareholder and director.
Which Country Will Handle Any Company Disputes?
In the case of a dispute, the country you name in your company’s legal documents under your Terms and Conditions will handle the case. To learn more about the legal aspects of writing your company’s Terms and Conditions, contact us at Christophi & Associates LLC. We offer consulting, as well as Cyprus business establishment, making the process of offshore company registration simple and hassle free.
As a final note, every Cyprus company must file an Annual Return once a year, within 14 days after the Annual General Meeting. And within 42 days from the Annual General Meeting, companies must submit the return to the Registrar of Companies. Each year, on August 1, companies submit a provisional income tax declaration for the current year. These liabilities are payable in three equal installments.