There is a flat fee of EUR 105 for registration and an annual company maintenance fee of EUR 350.
Notional interest deduction
A notional interest deduction ('NID') is available on new equity capital introduced into companies and permanent establishments of foreign companies. The NID is limited to 80% of the taxable profit before deducting the NID, and no NID will be allowed in the event of losses. Unutilised NID cannot be carried forward to be offset against future years' profits.
The general corporate income tax ('CIT') rate is 12.5%.
Special defence contribution tax
Interest received other than in, or closely related to, the ordinary course of business is subject to a 30% special defence contribution tax ('SDC tax') on the amount received, without any deduction for costs of earning the interest. The SDC tax is withheld at source if it concerns interest income received from Cyprus, otherwise by assessment on the basis of a tax return. Interest received in, or closely related to, the ordinary course of business is not subject to SDC tax but is subject to CIT at the rate of 12.5% mentioned above.
Download >> Cyprus Section of European Holding Regimes 2019
Publisher: Loyens & Loeff
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