Does Cyprus company paying tax on royalties?

[blizz]

I was wondering if a Cyprus company pay tax on royalties?

Are they exempted from other tax?

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Be part of the elite, be Mentor Group Gold coo-:!y

 

[negon]

Tax treaties withholding tax (WHT)
WHT on dividends, interest and royalties
Cyprus does not levy‌ a WHT on dividends, interest and royalties paid to non-residents of Cyprus except in the‍ case of royalties earned on rights used within Cyprus, which are subject to a WHT⁠ of 10% (5% in the case of cinematographic films). Such Cyprus WHT on royalties for⁤ rights used within Cyprus may be reduced or eliminated by double tax treaties entered into⁣ by Cyprus or by the EU Interest and Royalty Directive as enacted in the Cyprus⁢ tax legislation.

 

[blizz]

Other?

 

[clemens]

No they don't pay any tax on royalties!‍
what other answers are you looking for?

 

[JohnLocke]

No they don't pay tax!

 

[Chris K]

Regarding Royalty income in Cyprus: You get an‍ 80% tax exemption.

Here is an example to help you understand how it works:

The tax on royalty income is as follows: Let's say we have a total of €100⁠

Royalty income €100

Less: Direct expenses relating to royalty income €25

Net royalty income⁤ €75

Other trading income (not from IP) €20

Tax allowance 80% of €75 - €⁣60

Taxable income €35

Tax payable €35 Χ 12,5% (Cyprus Corporate Tax) €4,38

All income from use of intellectual property e.g sale, rental etc (less direct expenses) is⁢ subject to 80% tax relief.

The above apply provided that the IP is registered in the name of the company.