EU TAX DIRECTIVES

EU TAX DIRECTIVES

Cyprus has fully adopted the EC Directives amongst which those which aim to achieve a uniform taxation policy between the 25 Member States. The major EC Directives which have been consolidated in the Cypriot taxation Laws are the following:

  1. EC Parent/Subsidiary Directive – Aims to ensure no taxation in transactions between parent and subsidiary companies situated in different Member States
  2. EC Mergers Directive – Aims to ensure no taxation on company reorganization between different Member States
  3. EC Interest and Royalty Directive – Aims to reduce withholding taxes on payments of interest and royalties between Member States.
  4. EC Savings Directive – Aims to ensure taxation of interest income in one EU Member State.

"A combination of tax and non-tax incentives helped Cyprus to be established as an International Business Centre.
Your first option is to relocate your business in Cyprus and use Cyprus for your operations either in Europe or Worldwide. The second general option is to include a Cyprus Company in your structure to get advantage of the tax incentives and its wide network of DDT.
Below, we present the main features of Cyprus Companies with different activities. We will be happy to provide you with our comprehensive advice on tax planning solutions, on request, once we have information about your existing structure, your activities and your needs."