sep 19 2010

Cyprus Holding Company

Fidelitas7 @ 15:46
Cypus holding company information
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Topic Details
Establishing HoldCo  
Are advance rulings available? In certain cases
Are there restrictions on activities? No
Are there substance requirements? No
Is capital duty payable? Yes
Is there a special tax regime for holding companies? No
Is there CFC or equivalent legislation? No
Number of jurisdictions with active income tax treaties (minimum) 45
What is the effective corporate tax rate? 10%
Tax Treatment of Disposal of HoldCo  
Is any tax payable in HoldCo country on disposal of HoldCo shares by a nonresident corporate shareholder? No
Tax Treatment of Payments by HoldCo  
Dividends: What is the (non-treaty / treaty) rate of withholding tax on dividends paid to nonresidents? 0% (non-treaty, treaty and EU)
Interest: Are there thin cap limits or other restrictions on interest deductibility? No
Interest: Is interest on loans to acquire subsidiaries deductible against HoldCo’s profits? No
Interest: What is the (non-treaty / treaty) rate of withholding tax on interest paid to nonresidents? 0% (non-treaty, treaty and EU)
Liquidation payments: Is there withholding tax on liquidation payments? No
Taxation of HoldCo Income  
Dividends: Does the foreign subsidiary have to meet any substance requirements? No
Dividends: Does the foreign subsidiary have to pay tax locally? No
Dividends: How are dividends taxed? Exempt
Dividends: What is the required holding period? N/A
Dividends: What is the required percentage ownership? 1%
Gains on disposal of participations: Are capital losses deductible? No
Gains on disposal of participations: Does the foreign subsidiary have to meet any substance requirements? No
Gains on disposal of participations: Does the foreign subsidiary have to pay tax locally? No
Gains on disposal of participations: How are gains on the sale of a subsidiary taxed? Exempt
Gains on disposal of participations: Is relief available for the write-down in value of subsidiaries? No
Gains on disposal of participations: What is the required holding period? N/A
Gains on disposal of participations: What is the required percentage ownership? N/A