International Trading Companies
Such companies can be used for the invoicing / re-invoicing of goods and services (as well as for the receipt of trading commissions) from any country to any destination and for transit trade activities in combination with the operation of bonded warehouses, bonded factories and the free trade zones.
Cyprus Companies may provide services such as sales promotion, accounting function, provision of labour – executive staff, consulting, market research, commission agency, intermediation, client introduction and many others. They may employ expatriate staff, who benefit from double tax treaty provisions, by paying tax and social insurance in Cyprus at low rates, thus avoiding the high tax rates in their home country.
In this way, profits made by the Cyprus Company are taxed at Cyprus’ Low Corporate Tax Rate of 10%, instead of higher corporate tax rates. Trading from a low-tax EU State such as Cyprus and using appropriate tax planning - structuring to mitigate Cyprus Tax sometimes to levels well below 10% - is a far superior strategy nowadays than trading through an offshore company registered in a tax haven.
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Tax Structures can legally mitigate one’s tax liabilities. More information can be provided on request (contact us).