Trading and Re-Invoicing
International trading of goods using an intermediary Cyprus Company can be applied to transfer taxable profits resulting from a high tax jurisdiction to one with low taxes.
Advantages of Trading and Re-invoicing can be the following:
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Goods do not need to physically pass through Cyprus. Goods are transported directly to the final destination.
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All companies trading within Europe need to register for VAT purposes. No VAT is charged between companies within the EU who are VAT registered.
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Trading profits will be subject to corporation tax at the rate of 12,5%.
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There is no withholding tax applicable on dividends distributed to non-resident shareholders of Cyprus Companies.
The Intellectual Property Tax regime of Cyprus combined with the protection offered by EU Member States and by the signatories of all major Intellectual Property treaties and protocols Cyprus offers an efficient and favourable jurisdiction for registering and managing IPs.
Intellectual Properties (IPs) can be the most valuable assets of a Cyprus registered organization.
