Tax for defenses, what is that?

[clemens]

I've read somewhere that 10% should be paid for defense. Could you clarify on this ?

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[JohnLocke]

Defence tax at 10% is charged on the following cases:

(a) If the company is‌ Cyprus tax resident – there is a 10% defence tax ( withholding tax) on interest‍ receivable

(b) Dividends receivable from abroad are in general not subject to defence tax, but⁠ there is one exemption

© There is no defence tax on trading profits.

 

[clemens]

wow, that was fast Admin, thank you 🙂 I think I understand it now.

 

[Moh1]

Thanks, I wasn't aware of this defence tax but think it is⁣ the same as the regular TAX you have to pay if you incorporate your Cyprus⁢ company as a national company.

 

[webdriller]

If you incorporate as an IBC you can avoid the TAX which means you are‌ subject to 0% tax, this requires only that you aren't doing any business within Cyprus‍ and you have foreigner as shareholders and directors.

 

[clemens]

This means, no tax for IBC's in Cyprus right?

 

[SysOp]

@clemens


Yes thats true, you won't pay any tax if your Cyprus company is registered as an IBC and if your business is outside of Cyprus!

 

[unknown]

@clemens

Yes thats true, you won't pay any tax if your Cyprus company is registered‌ as an IBC and if your business is outside of Cyprus!

 

[jb100]

Very happy to know that,there is no defense tax on trading profits in Cyprus.For a‌ trading/investment company,no tax is payable in Cyprus as a result of which trading margin will‍ be higher.So more and more new trading companies are going to be established in Cyprus.But⁠ we should realize that defense expenditure is quite essential to maintain the dignity and sovereignty⁤ of any country .So one should be ready to pay for the best interest of⁣ the nation.

 

[deadpool]

I kind of see why Cyprus is the go-to favorite offshore option.

 

[johnskywalker]

I think to understand it much better, here is a link that contains a lot‌ of valuable information which could help all of your concern about TAX. Your IRS Tax‍ Relief Experts | Tax Defense Network

 

[deadpool]

yes, that how it would work when your company isn't located in Cyprus.

 

[clemens]

LoL you Guys opened an almost 7 years old thread. I think I figured out‌ how all this Works with my empire of offshore corps all is fine 😉

 

[allan]

Something very old and is not charged any longer!

 

[techtrader]

You still need an accountant with Cyprus non-resident company. Useless.

 

[JohnLocke]

Useless maybe, depends on who need it 😉

 

[negon]

It's not useless to have a Cyprus company if some is looking for incororating their‌ business in Europe in order to do business here! Accounting is not difficult for a‍ Cyprus company you can even let your agent do all the work and just sit⁠ back and do business.