One of the main advantages foreign investors benefit from in Cyprus is its double taxation agreements which associated with its low corporate tax rate make the island an excellent country to set up a company in. The double taxation agreements Cyprus has signed so far provides both individuals and companies significant reductions on their tax burdens. Hong Kong companies operating in Cyprus may benefit from the following advantages:
For additional information about Cyprus as an investment destination you may also contact our law firm.
Cyprus hasn’t concluded any taxation agreement with Hong Kong, but due to its taxation system Cyprus provides numerous tax exemptions and reductions to foreign investors. Among these, Hong Kong residents may benefit from the following:
Our Cypriot lawyers may provide you with more information about the taxation of foreign companies.
Hong Kong has only recently started to sign double taxation agreements, which is why foreign companies are taxed only on the income or profit sourced in the country at the moment, therefore Cypriot companies with subsidiaries or branches in Hong Kong will be taxed only on the income arising in the country. Other incomes of Cypriot companies will be taxed in their resident country. Hong Kong also allows a deduction for the foreign tax paid on a turnover basis if an income is subject to taxation in both Cyprus and Hong Kong. With respect to Cypriot residents, they will be taxed only on the income earned from employment in Hong Kong.
For complete information about trade relations with Hong Kong you may refer to our lawyers in Cyprus.
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