Many entrepreneurs who were enticed to purchase a company in Cyprus as a tool for tax planning now find themselves facing a significant challenge in organizing the operations of this company amidst evolving legal regulations.
At Skarbiec Law Firm, we possess expertise in adjusting Cyprus companies to the shifting requirements of law, including:
- provisions concerning the GAAR anti-tax avoidance clause,
- regulations regarding foreign CFC-controlled entities, and
- WHT regulations pertaining to dividends, interest, or license fees.
Additionally, we offer specialized knowledge in the establishment of bank accounts for Cypriot companies and in maintaining relationships with financial institutions in the realm of AML / KYC procedures.
Just a few years back, operating a company in Cyprus served as a premier choice for entrepreneurs seeking so called “tax planning strategies”. Establishing a business in Cyprus enabled the complete avoidance of tax on dividends and facilitated a reduction in income tax on operational activities.
Currently, the legal landscape is changed.
Taxes in Cyprus, legal procedures, and their implications for businesses are subjects of ongoing scrutiny and analysis.