When does a Cyprus Company have to pay tax?

[Spinat]

I read that a non resident company in Cyprus don't have to pay any tax, but at the same time I read from the Cyprus tax government site Government Web Portal - Areas of Interest that a resident company has to pay 10% tax, so how do I go about it if I want the company to be non resident?

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[JohnLocke]

I have moved the thread to the correct forum.

We have 2 types of Cyprus‌ companies, as far as their tax status is concerned. These are:

(a) A Cyprus resident‍ company which is taxed at 10% on its profits.

(b) A Cyprus non-resident company which⁠ is not taxed.

The place where management and control of the company is exercised determines⁤ the residence status of the company. If the majority of the company Directors are Cypriots,⁣ then it can be assumed that decisions are taken in Cyprus and the company is⁢ Cyprus resident. This is why we use Cypriot nominee directors.

A Cyprus resident pays 10%︀ tax, can get Cyprus Tax Resident Certificate and can distribute to its shareholders all remaining︁ profits without any withholding taxes. Also the company can take advantage of more than 40︂ double tax treaties that Cyprus signed with various countries. It can get a VAT Registration︃ number.

A Cyprus non-resident company, pays no taxes, but it cannot take advantage of the︄ double tax treaties network and cannot get a Cyprus Tax Resident Certificate. It cannot get︅ a VAT Registration number.

Registered Office must be in Cyprus since it is a Cyprus︆ company. It cannot be anywhere else (any other country)

 

[Spinat]

Thank you Admin for your reply 🙂 has been a long time since my last visit‌ I had personal health problems:hello:

 

[JohnLocke]

Your welcome, I do hope everything is well with you and that we see more‌ from you as well 🙂

 

[deadpool]

Between the two, I could clearly see resident company has more advantages though missing on‌ tax benefits.

 

[SasxInc]

You are correct. Though resident company have to‍ pay 10% tax of net profit, it is better than non resident company. Because, 10%⁠ tax open the door of many advantages.

Btw tax percentage already increased in Cyprus recently⁤ 😉

 

[deadpool]

Can
Can you update us on increased tax percentage in Cyprus now?

 

[SasxInc]

This post may be help you getting recent rate of tax in Cyprus.‌
Expats in Cyprus face higher taxes

 

[negon]

If it is resident it has to pay tax from the beginning that it make‌ profits above 25,000 or am I wrong?

 

[suzy]

That explains it all once for all, thanks for the input.

 

[JohnLocke]

Thanks, hope it helps thouse that still are confused.

 

[drillbill]

This still apply in 2017 ?