The goal of international tax planning is to organize your economic dealings so as to reduce your taxes. A clever way to reduce your taxes is to take benefit from a double tax treaty network.
The most vital point of the double taxation treaty is to keep you away from the double taxation when the same earnings of an individual are taxed in 2 or more nations. As a result of the DTT, global businesses are traded with reliability and reassurance. This is the most important impulse why the double taxation treaties encompass a very important mechanism for tax planning and offer considerable advantage to the countries which sign such tax treaties.
Cyprus throughout the past years has turned into a trustworthy and most favorable International Financial Centre since is widely chosen by businesses all over the world in order to maximize their business profits through an effective utilization of Cyprus tax system. Cyprus companies are taxed with 10% on their global profits, which is the lowest corporate income tax rate in EU.
One of the most key reasons why Cyprus has turn into a fashionable destination for creating a base for international business is the openness to a big number of tax treaties. Cyprus has 45 double tax treaties and is also in negotiations with numerous other nations.
The idea of DTT is to stay away from double taxation on profits earned in these countries. This is achieved in general by either exempting the earnings from taxation by providing a tax credit for the total of tax paid in other contracting nation or by a reduced withholding tax. The countries with which Cyprus has double taxation treaties are the following:
Take benefit from the favorable DTT Network of Cyprus and register your Cyprus Company today. Don’t waste any time, time is money. Oxford’s international tax planning Cyprus team will help you to choose and implement the most appropriate structure for your company. For more details in respect of Cyprus DTT withholding tax rates, please download our Fact Sheet No.2. from oxfordcy.com fact sheets.
About the author:
The Oxford Management team has many years of knowledge and practice in the area of tax planning and offshore company registration and administration. The Oxford Management is also specialized in the offshore business consulting worldwide.