Maltese Resident Non-Dom Company in Cyprus for a crypto company

[NefariousGuppy]

I've recently read about the resident non-dom company possibility where a Maltese non-dom has a company in Cyprus, not paying any tax on profits and then also not remitting them (this is what makes it resident Malta non-dom). Would this be possible if the Maltese non-dom would want to open a Cyprus crypto company ran from Malta? The Maltese non-dom would live off unrelated income to the Cypriot crypto company and keep everything under 35k, hence the Maltese non-dom would essentially pay zero income tax and zero CIT tax. What are the risks of the citizen country chasing after this person eventually, if said person would only spend the coming decade between Malta and Cyprus.

Also, do people still use BVI + Malta non-dom to avoid CIT on this forum? How do you handle dividends with such a setup? Isn't this setup incredibly "leaky"?

 

[MarkusCostigan]

In theory this would be an abuse (GAAR?) to obtain "double non-taxation".

I follow with interest, waiting for experts.

 

[CyprusLawyer101]

NefariousGuppy said:
I've recently read about the resident non-dom company possibility where a Maltese non-dom has a company in Cyprus, not paying any tax on profits and then also not remitting them (this is what makes it resident Malta non-dom). Would this be possible if the Maltese non-dom would want to open a Cyprus crypto company ran from Malta? The Maltese non-dom would live off unrelated income to the Cypriot crypto company and keep everything under 35k, hence the Maltese non-dom would essentially pay zero income tax and zero CIT tax. What are the risks of the citizen country chasing after this person eventually, if said person would only spend the coming decade between Malta and Cyprus.

Also, do people still use BVI + Malta non-dom to avoid CIT on this forum? How do you handle dividends with such a setup? Isn't this setup incredibly "leaky"?
Click to expand...

Nowadays, the Cyprus non tax resident company requires additional steps to be achieved, including demonstrating tax residency through management and control abroad. The question is what documents can be produced by Maltese authorities as to the tax residency of the company in Malta and whether those can be made acceptable by the CY tax authorities. I am currenrly in the middle of drafting of a tax ruling request for the same mattet involving another jurisdiction. I can provide some further feedback in a few months.

MarkusCostigan said:
In theory this would be an abuse (GAAR?) to obtain "double non-taxation".

I follow with interest, waiting for experts.
Click to expand...

GAAR should become relevant only where the authorities do not agree to a potential tax treatment. If you have two jurisdictions' tax authorities saying : " its ok , i dont want any taxes out of this " who is to raise a GAAR issue?

Last edited: May 9, 2024

 

[JustAnotherNomad]

CyprusLawyer101 said:
I can provide some further feedback in a few months.
Click to expand...

Please do! Maybe you can message me when you have this info? I don't check the forum very often...

 

[CyprusLawyer101]

JustAnotherNomad said:
Please do! Maybe you can message me when you have this info? I don't check the forum very often...
Click to expand...

Sure,