Cyprus > Tax Incentives
Tax Incentives
- The lowest corporate rate income tax rate within the EU(12,5%);
- Applicability of all EU directives ;
- Extensive Double Tax Treaty network;
- Exemption from tax on incoming dividends (subject to conditions);
- No withholding tax on outward payments (Dividends-Interest-Royalties);
- Full exemption from tax on profits from the sale of securities (including shares/units) with no conditions;
- Tax free re-organisations;
- Very low acceptable profit margins regarding back to back loan transactions;
- Tax losses carried forward indefinitely for utilisation against future taxable profits;
- Capital duty on issue of share capital 0,6% (no capital duty on share premium);
- Zero tax if management and control is outside of Cyprus;
- Foreign Permanent Establishment profits earned by a Cyprus company are tax exempt (subject to conditions);
- Advance ruling practice exists;