International Business (Offshore) Companies – Why invest in Cyprus?

The ascension of Cyprus to the European Union and its beneficial tax regime make it an attractive location for International Business (Offshore) Companies (IBCs). The tax reform of 2003 provides many advantages to IBCs, as follows:

• No distinction between local companies and IBCs. Profits before tax of IBCs and any branches managed and controlled from Cyprus are taxed at the flat rate of 10%
  
  
• Profits from the sale of securities are exempt from Corporation tax
  
  
• Dividend income is also exempt from Corporation tax under certain conditions.
  
  
• Interest earned from trading or closely connected activities is only taxed under corporation tax
  
  
• An extensive network of double tax treaties have been concluded with other countries and can be used to their benefit
  
  
• Profits from a Permanent Establishment abroad are exempt from Corporation tax
  
  
• No withholding tax on dividend distribution to non-tax-residents
  
  
• Tax losses may be carried forward indefinitely and may be utilized by way of group relief
  
  
• Capital gains tax is only charged in the case of sale of immovable property situated in Cyprus
  
  
• Beneficial owners assure their anonymity as they do not have to disclose their details to the local tax authorities