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Cyprus New Tax Legislation - important for Cyprus company formation
(Image: http://media2.picsearch.com/is?AiSlKQL6_oQGGqPW2N8PeKQJmn9E3SUm6he0tGS5WMM&height=173)The brand new legislation came pertaining to company registration in Cyprus into force on 1 January 2003. Underneath the new legislation Cyprus income tax is imposed:
In the income that is worldwide of residents of Cyprus, and No requirement for audited records consequently no requirement for an auditor; On the earnings produced in Cyprus by any non-residents of Cyprus. A company is considered resident if this has its management and control in Cyprus. Consequently any company that carries down operations outside Cyprus and belongs to non-residents of Cyprus and contains its majority of the board of directors outside Cyprus just isn't prone to taxation in Cyprus. This means that non-resident - offshore organizations in Cyprus cannot simply take the advantage of any double income tax treaties involving Cyprus but at precisely the same time will not be susceptible to the trade of information rules under such treaties. Having said that, if your Cyprus company wants to take advantage of the double tax treaty network of Cyprus it is highly better to have most of the directors in Cyprus and to offer that most board meetings associated with the company shall happen in Cyprus (we can use our Cyprus nominees for this function). To learn about cyprus registry search and cyprus company information, please go to all of our website cyprus company information. Which are the drawbacks of developing a ongoing company offshore? Again, there are three major problems to think about when taking a look at establishing a company in an offshore environment, but then again, you can't have the advantages without some disadvantages.
Disadvantage no. 1 Appraisals and Financing
The offshore concept provides you with privacy, nevertheless the major drawback for this advantage is it difficult for the potential financial partners or investors to determine what your business is actually worth that it also makes. Along with this, loan providers are more inclined to be hesitant in approving or giving assistance that is financial a company that is out of the “reach”.
Disadvantage #2 Limitations
Some offshore organizations may be restricted within their activities because of limitations which are put on them by the usa along with other jurisdictions. Trade advantages that can assist US companies might not be accessible to you as a result of your offshore registration. Once again, research this presssing problem as they can be a drawback based on your industry.
Disadvantage no. 3 Perception
As was mentioned above, the offshore concept is not constantly held in the regard that is highest as a result of media only reporting bad cases so incorporate with care and privacy.