The profits of a Cyprus company can be significantly reduced by shifting profits to a zero-tax offshore jurisdiction. Although this may create significant tax savings for the Cyprus company and its owners (as most of the profits are shifted to an offshore jurisdiction), it also creates tax and reputational risks.

THE OPPORTUNITY

If properly structured and by taking advantage of the Cypriot NID provisions, the effective tax rate of a Cypriot company can be as low as 2,5%. This, without using an offshore jurisdiction or any complex/exotic arrangements. NID provisions apply to all Cyprus companies generating taxable income, including those providing finance, trading, licensing IP and other.

WE CAN HELP

We can review your current position and advice you as to how you can take advantage of the Cypriot NID provisions. Moreover, we can handle the relevant tax compliance and track your NID calculations in line with relevant regulations and calculate your NID deductible expense.

CONTACT US

Constantinos Markou
Director
Head of Tax Services
markou@atca.com.cy
+357 25661717

Information Sheet: Cyprus Notional Interest Deduction