How to optimize Cyprus corporate taxes ?

[DubaiOffshore]

Hello,

I have a few questions concerning Cyprus.
I opened a company there (I'm french but legally resident in UAE).
I have a company in UAE and now I have this Cyprus company.
The Cyprus company has a nominee director who is a resident of Cyprus.

I want to know what is the best way to recover as much money as possible from the Cyprus company to UAE without paying taxes or by paying as little as possible.

Is there any "withholding" tax if I invoice from my UAE company for services like marketing or anything else ?

How would you guys do it legally and without raising too many questions ?

Let's say I make 100K EUR of sales in a year.
I pay 19% of that amount as VAT. I have 81K EUR left.
Should I invoice "Marketing services" or even "Licensing fees" from the UAE company for let's say 80K EUR and keep 1K EUR in the company as profit ? Is there any withholding tax on that 80K EUR invoice ? Or is there another way to send that money back to UAE without paying taxes ? Can I simply make a transfer to my personal account in UAE ?

Sorry for these dumb questions but I really have no idea of how things work in Europe. I also don't want to raise any red flags and have an inspection in the company.

Thanks.

 

[ultrarekt]

If UAE will not tax your UAE company's income, then yes, bill your Cyprus company from your UAE company, as simple as that. Don't make it a single invoice for the whole year as that's sketchy. Bill your Cyprus corp from your UAE corp every 3 months for licensing fees. And to add some legitimacy to it, also bill your Cyprus corp (from yourself, personally) on a monthly or quarterly basis for "contractual work - marketing"

 

[ultrarekt]

Also, keep in mind: the licensing fees and your salary would be expenses for the cyprus company. meaning you reduce your taxable "profit".

So obviously you can't make 100K and bill yourself 99K and only be taxed on 1K, that's too obvious.

So do it in a way where if you make 100K, bill 80-85K from UAE (as yourself, contractor, and your company for licensing fees) and leave like 15-20K to be taxed on in Cyprus.

I believe you shouldn't have too many problems (if any) using that method.

 

[JohnLocke]

ultrarekt said:
If UAE will not tax your UAE company's income, then yes, bill your Cyprus company from your UAE company, as simple as that. Don't make it a single invoice for the whole year as that's sketchy. Bill your Cyprus corp from your UAE corp every 3 months for licensing fees. And to add some legitimacy to it, also bill your Cyprus corp (from yourself, personally) on a monthly or quarterly basis for "contractual work - marketing"
Click to expand...

That may indeed be the best advise in your situation. Otherwise you want to consult a tax expert in your country to help you.

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Disclaimer: Nothing I say should be taken as tax, legal or financial advice. Anything I say is for general informational purposes only. Always seek independent professional advice.​