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NEW TAX RULES ENHANCE CYPRUS’ ROLE AS A BASE FOR INTERNATIONAL TAX PLANNING   (23 April 2004)

A. FOR HOLDING STRUCTURES

The new taxation rules provide scope for establishing holding structures in Cyprus.

• There is an exemption from tax on dividends received from overseas (conditions apply).

• Payments of dividends, interest and royalties to non residents are not subject to any withholding tax.

• Profit from dealing in securities is tax free. (This includes trading in securities in Cyprus as well as overseas markets).

• Capital gains from the sale of movable asset is tax free.

• Large network of tax treaties with very favorable clauses. Many of the treaties impose low or nil withholding tax on dividends, interest or royalties at source.

• New companies can now utilize the benefits of the Cyprus treaties with the USA and Canada.

• European Union parent subsidiary directives apply.

B. OTHER STRUCTURES

In addition to holding structures, Cyprus offers tax planning opportunities for all other activities with the following benefits.

• Registration for V.A.T. for E.U. transactions.

• Low V.A.T. rate (15%).

• E. U. presence.

• Low income tax (10% on the net profit).

• Many others…

For more information please contact: solutions@oxfordcy.com . " cols="40" rows="10"> offshore@oxfordcy.com . " cols="40" rows="10">A. FOR HOLDING STRUCTURES

The new taxation rules provide scope for establishing holding structures in Cyprus.

• There is an exemption from tax on dividends received from overseas (conditions apply).

• Payments of dividends, interest and royalties to non residents are not subject to any withholding tax.

• Profit from dealing in securities is tax free. (This includes trading in securities in Cyprus as well as overseas markets).

• Capital gains from the sale of movable profit is tax free.

• Large network of tax treaties with very favorable clauses. Many of the treaties impose low or nil withholding tax on dividends, interest or royalties at source.

• New companies can now utilize the benefits of the Cyprus treaties with the USA and Canada.

• European Union parent subsidiary directives apply.

B. OTHER STRUCTURES

In addition to holding structures, Cyprus offers tax planning opportunities for all other activities with the following benefits.

• Registration for V.A.T. for E.U. transactions.

• Low V.A.T. rate (15%).

• E. U. presence.

• Low income tax (10% on the net profit).

• Many others…

For more information please contact: solutions@oxfordcy.com .








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