Tax Saving Corporation – Client-Information

Information regarding the current situation in Cyprus

The session of the Parliament for discussion about the draft bill for the stability levy has been postponed to today at 18:00 local time.

In the meantime a lot of variations about the way the levy, that has been introduced by the Eurogroup, will apply have seen the lights of publicity, including scenarios for a levy of:

a)            3% on amounts up to EUR 100,000, increasing to 10% on the next EUR 400,000 and ending up to 15% on amounts above the level of EUR 500,000 OR

b)           exemption on the first EUR 20,000, with the rates remaining the same as originally proposed and included in the bill thereafter, i.e. 6.75% up to EUR 100,000 and 9.99% thereafter OR

c)            exemption on the first EUR 100,000 (something which is in line with the relevant local and EU legislation and which seems to be the option gaining momentum both locally and at EU levels) with any amounts beyond that level to be levied a percentage which it is not known so far.

We should stress, however, that no matter whichever scenario will be put for discussion and voting in the Parliament this afternoon, based on the information currently available the most probable (or even almost certain) outcome is that the bill will be rejected.

The President of the Republic has already communicated with EU officials to inform them about the likely outcome of the forthcoming Parliamentary session and has asked for their support in finalizing the financial programme without a stability levy, siding also the overall damage to the Euro and the Eurozone and the EU in general from such a measure, as indicated by the performance of the financial markets around the world yesterday.

The government is already examining alternatives which could produce an amount equal or even higher than the EUR5.8bln that the above measure is expected to generate.

The CentralBank of Cyprus has announced that the banks and other financing institutions will remain closed both today and tomorrow with the possibility of this bank holiday to be extended until next Tuesday (Monday is a public holiday in Cyprus)  having very good chances of occurring.

We will try our best to keep you up to date.
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Russia and Cyprus sign customs agreement - Cyprus Mail

Cyprus is working hard to improve its image with regards to anti-money laundering. One recent move was to sign a memorandum of understanding (MoU) with Russia in order to tackle Customs offences. The countries have worked out a mechanism dealing with offences and violations of Customs regulations of the two countries. Provisions of the mechanism will address prevention, detection, investigation and prosecution of Customs offences, an exchange of information and to ensure an accurate assessment and calculation of taxes, duties and other customs charges on export and import of goods.

Read more at Cyprus Mail: Russia and Cyprus sign customs agreement - Cyprus Mail

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Tango with the Tax Man

Multinationals Find Loopholes Galore in Europe

© Federal Ministry of Finance

Large multinationals, many of them based in the United States, are masters at avoiding taxes on profits made abroad. Apple, for example, paid just $100 million in taxes in 2010 on overseas profits of $13 billion. But Germany would like to put a stop to the practice, and is finding some influential support.

Read more at the english edition of Spiegel Online.


BY SVEN BÖLL, MARKUS DETTMER, FRANK DOHMEN, CHRISTOPH PAULY, and CHRISTIAN REIERMANN

Taxation Planning via Cyprus

Use Cyprus as a base for international tax planning!

Today with the tightened global economic crisis, businesses try to preserve growth, and savings is no doubt one major solution.

Many international business companies use Cyprus as a base for international tax planning. Investors also use Cyprus as a vehicle in order to maximize after tax profit on global investments. Such income, arising from investment deeds through Cyprus, shall benefit from the provisions of Cyprus tax system and double taxation avoidiance treaties network (DTT). Cyprus maintains Double Taxation Avoidance Treaties with more than 40 countries.

Taxation Sytem

The Cyprus tax system offers to investors and companies several benefits together with a very low corporation tax (10%) for tax-resident companies. BUT income from dividends, appreciation of shares and bonds and from the purchase and sale of the aforementioned or from the sales of participations is not taxable.
80 % of the income from Intellectual Property are deductable as deemed expenses. The remaining 20 % of income from Intellectual Property is taxable by the usual corporate tax of 12,5 %, thus resulting in an effective taxe rate of 2,5 % of the whole income from Intellectual Property only.
Royalties and licenses for the use of rights outside of Cyprus are not subject to withholding tax.

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Offshore tax havens: advice for expats

Expats can pack their pension plans too and take their funds overseas

Tax free havens are not just for British Formula One champions

With millions of Britons opting to work overseas or emigrate on a long-term basis, what are your tax and savings options?
It is estimated that more than 5.5 million Britons have moved to live or work overseas in the past decade. And while the recent weakness of the pound has had a detrimental impact on pensioners relying on pension income based in sterling there is still a huge appetite from people to leave these shores.


For non-Cypriot nationals, the tax rates can be very low - between 10 and 15pc, while there is no wealth or succession tax for non-Cypriot domiciles. Cyprus is one of the very few tax havens where if you have a UK government pension (for example from military service, or being a civil servant etc), then you can have your pension remitted without deduction of any UK PAYE, and pay a far lower tax rate in Cyprus.

A government pension of this sort usually remains taxable in the UK even though you might live elsewhere; Cyprus is a notable exception

Tax-efficient pensions and savings

Pensioners who are fed up with Britain’s high taxes and miserable weather can escape both without leaving the European Union by moving to an English-speaking country with a flat rate of income tax at 5 per cent or annual allowances of more than £14,600 tax-free.
Savers who have retired can receive interest from bank deposits and shareholdings entirely free of income tax.


Read more at The Telegraph

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