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Russia Cyprus DTT and the Removal of Cyprus from the Black List
It is a common secret that Cyprus holds many benefits to do business globally. Its tax "benefits" include the lowest Corporate Income Tax (CIT) within EU (10%), tax free treatment of incoming dividends, zero withholding tax for payments to non-resident shareholders, creditors and licensors; no capital gains tax is levied on the disposal of either shares or property situated outside Cyprus unless the company holds immovable property situated in Cyprus and it enables the establishment of Trusts for inheritance, wealth protection, financial planning, unanimity and other purposes. Taxand Cyprus discuss the amendment to the Cyprus Russia DTT and how this will benefit investors.
Cyprus has entered into Tax Treaties for the avoidance of double taxation (DTTs) with a number of countries. At the same time though, it has kept its supremacy in terms of the above (zero withholding tax and capital gains).
The amendment of the DTT and the removal of Cyprus from the black list will broaden the horizon in the trade activity of the two countries. Cyprus has gained an increasing transparency via its participation to the system of the exchange of information, and it has proved to be a strong player thanks to its tax system. The gates are open to those who can foresee what is in their best interest.
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