Cyprus increasing corporate tax to 15%
- Thread starter kkein
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Well, i don't know if this is true but after Ireland said to increase CIT at 15% it's something that is not surprising.
I've also heard that Gibraltar is going to increase CIT to 12.5% but not sure when this will happen (if it will happen). For sure there's a trend in trying to uniform CIT to level the playing field but i guess we will always find ways to reduce taxes in more creative ways 🙂
I've also heard that Gibraltar is going to increase CIT to 12.5% but not sure when this will happen (if it will happen). For sure there's a trend in trying to uniform CIT to level the playing field but i guess we will always find ways to reduce taxes in more creative ways 🙂
The logic behind the change is the decision of G7 to implement an a minimum corporate tax rate to 15%.
Since Cyprus's Economy rely on the services offering to foreigner companies, new tax incentives will be implement.
Since Cyprus's Economy rely on the services offering to foreigner companies, new tax incentives will be implement.
I agree with you.
However, If tax will be increased to 15%, dividends payable to local residents (Cypriots) will be exempted from taxation (SDC) (now is 17%).
For foreigners doing business in Cyprus, dividends payable was always free of tax.
However, If tax will be increased to 15%, dividends payable to local residents (Cypriots) will be exempted from taxation (SDC) (now is 17%).
For foreigners doing business in Cyprus, dividends payable was always free of tax.
For a holding company it changes nothing. Dividends received from a subsidiary in an EU country continue to be taxed with 0% both in that country and in Cyprus, and paying dividends to non-residents also remains at 0%. They're not taxable by the CIT.
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