1. A standard uniform corporate tax rate of 12.5% is applicable to all companies. This is among the lowest corporate tax rate in Europe. No distinction is made between local companies and IBC's.
2. Dividend income (participation) exemption subject to non-stringent conditions.
3. No withholding taxes on payments of dividends, interest and royalties irrespective of the recipient and the existence of a Double Tax Treaty.
4. No taxation on profits from the sale of securities (no minimum holding period, percentage etc).
5. No tax on profits from the operation or management of a Cyprus-registered vessel.
6. 4,25% Corporation Tax if the vessel is not registered under the Cyprus flag.
7. International business branches which are managed and controlled from abroad and international business partnerships are totally exempt from corporation or income tax.
8. No taxation on profits of permanent establishments.
9. No taxation on the liquidation of a Cypriot company.
10. No debt-equity and thin capitalization rules.
11. A fully EU and OECD compliant tax system. Cyprus is a respectable EU, non-offshore, non-tax haven jurisdiction.
12. Investor-friendly Tax Authorities. 13. Access to EU Directives which have been enacted into Cyprus Law.
14. Access to a wide and in many cases particularly beneficial double tax treaty network.
15. No capital gains tax or net worth taxes except with respect to real estate situated in Cyprus.
16. No stamp duties on normal trading activities.
17. No specific substance requirements and an absence of strict transfer pricing rules.
18. Foreign beneficiaries are not liable to pay additional tax on dividends or profits over and above the amount paid or payable by the respective legal entities.
19. Low personal tax rates and low social insurance contributions.
20. Mergers, Takeovers and other Re-Organizations can take place within groups without tax consequence.
21. Unilateral tax-relief for foreign tax suffered is granted to all Cypriot companies.
22. Tax losses can be carried forward indefinitely and can also be surrendered as group relief.
23. Interest deduction for borrowing costs provided.
24. Added commercial value and monetary benefits due to the ability to register for EU VAT in Cyprus.
25. Foreign employees resident in Cyprus will be taxed the same way as the local employees. If employed outside Cyprus, the salaries are tax exempt provided they are remitted through Cyprus.