In this edition we are happy to introduce a new jurisdiction in which we now offer incorporation services: Labuan! We put the spotlight on Cyprus Citizenship by Investment and Cyprus Permanent Residency Permits, presenting the different investment options for obtaining citizenship and the revised criteria of the permanent residency.
We cover the latest amendments on Russian CFC rules, and present the CFC rules of Poland. In addition, we discuss changes in BVI's tax regime and Cyprus' IP regime, and provide an update on Cyprus' tax treaties with Switzerland, Guernsey and Ethiopia. Lastly, we present all the incentives that UAE have to offer for business.
We hope you enjoy reading our newsletter.
Launched in 2010 Labuan has its own legislation and tax regime to enhance the competitiveness of the Labuan International Business and Financial Centre (IBFC). The IBFC offers a wide range of financial products and services, and is a modern comprehensive solution striking the ideal balance between client confidentiality and stringent compliance as business transactions and practices are conducted in accordance with the international standards and practices.
Labuan offers a business friendly environment, a simple and attractive tax system, and a modern and internationally recognised legal framework which is enforced by its regulator, the Labuan Financial Services Authority (FSA). As a well-regulated jurisdiction, Labuan IBFC remains compliant to all international protocols on exchange of information. The island is not on any black list by international organisations or other countries. Read more
Cyprus Citizenship - Get a European Passport in just 3 months: The Cyprus Citizenship program is one of the most attractive and popular during the last decade. The main benefits of granting Cyprus citizenship include:
An express procedure, it takes only 3 months to be approved
The investment is as low as €2,5 million
The investor must retain the investment for 3 years after which s/he is free to release it
Citizenship granted to spouse of the investor and minor children as well as to the financially dependent adult children up to the age of 28 who are full time students
No requirement to reside in Cyprus
Visa-free travel to over 150 countries worldwide
All the rights of an EU citizen protected by EU legislation and regulations: freedom to work, study, reside in any EU member state, as well as Switzerland, Norway, Iceland and Liechtenstein
Low government fees for the filing of the application
Cyprus Permanent Residency Permits: Now applicable to children over 25 and parents of applicants: On the 22 of February 2016 the Cyprus Government, following revision of the criteria for granting immigration permits, announced that children over 25 and the parents of the applicants now have the right to automatically apply to obtain a permanent residence permit in the Republic of Cyprus, provided certain conditions are met. Read more
On February 15 2016 the Russian President Vladimir Putin signed Federal Law No. 32-FZ on Amendments to Parts 1 and 2 of the Russian Federation Tax Code regarding taxation on profits of Controlled Foreign Corporations (CFC) and Income of Foreign entities. To read the key amendments as presented by the law click here.
Why the UAE? The UAE is a white listed country that offers an ample of business opportunities. Special economic zones, free trade zones, and UAE offshore companies offer 100 percent ownership, exemption from income and complete taxes, no wealth taxes, repatriation of profit and a wide network of 80 double tax treaties. Read more
Poland recently introduced new regulations for Controlled Foreign Corporations (CFC), under which Polish tax residents are now subject to 19% tax on the income of their CFCs. The CFC rules include legal persons, limited liability companies, non-tax transparent structures such as non-tax transparent partnerships. Read more
Tax Treaties Update
Cyprus and Ethiopia signed tax treaty: On 30 of December 2015, the Republic of Cyprus and the Federal Democratic Republic of Ethiopia signed a tax treaty for the avoidance of double taxation. The treaty is based on the Organisation for Economic Co-operation and Development (OECD) Model Tax Convention framework and has been concluded as a means to contribute to the expansion of Cyprus’ trade, and to the enhancement of economic relations between the two countries. Read more
Cyprus and Switzerland - tax treaty entered into force: The treaty is based on the OECD Motel Tax Convention framework with a few modifications, and applies to taxes on income and on gains from the alienation of movable or immovable property. In the case of Switzerland, the treaty covers the income tax, the profits tax, the capital gains tax and the property tax. What concerns Cyprus, the treaty covers corporate and personal income tax, defense tax, capital gains tax and immovable property tax. Read more
Cyprus and Guernsey - tax treaty entered info force: The treaty between Cyprus and Guernsey is based on the OECD Model Tax Convention framework with a few modifications, and applies to taxes on income and on gains from the alienation of movable or immovable property. In the case of Cyprus it covers corporate and personal income tax, defense tax and capital gains tax. In regards to Guernsey, the treaty covers the income tax. Read more
BVI planning changes in tax regime: The British Virgin Islands Government has recently announced plans to make substantial changes to the tax regime in 2017 and to strengthen enforcement efforts this year. The budget announcement indicated three key changes. To read them please click here.
Cyprus Ministry of Finance: Amendments to the Intellectual Property (IP) regime: The Cyprus Ministry of Finance has recently announced a number of amendments to the island’s Intellectual Property (IP) tax regime. To reach the changes in accordance with the amendments please click here.
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