Taxation of Cyprus Investment Firms

Taxation of Cyprus Investment Firms

In this article, we will look at the main features of the taxation of Cyprus investment companies.

1. CIF is taxable like any other tax resident company incorporated under the Cyprus Companies Law (Chapter 113) – 12.5% ​​of any net income earned at the end of the year.
2. There is no tax (0%) on profits from the sale of “titles” (that is, shares, bonds, debentures, founders’ shares and other titles of companies or other legal entities registered in Cyprus or abroad, and options thereon).
3. No corporate tax (0%) on dividends received by CIF from own investments from resident or non-resident companies.
4. No withholding tax (0%) on payments to non-resident shareholders in respect of dividends, interest or royalties.
5. No special defense tax on dividends received by CIF from another Cyprus resident company.
6. No special defense tax on dividends received by the CIF from a non-resident company.

The above is for informative purposes only.  Further professional advice should be sought for each particular case. Our firm does not accept any responsibility for any loss or damage occurring by acting on the basis of this information.