Cyprus IBC – International Business Companies
What is an IBC Company?
An international business company or international business corporation (IBC) is an offshore company formed under the laws of some jurisdictions as a tax neutral company which is usually limited in terms of the activities it may conduct in, but not necessarily from, the jurisdiction in which it is incorporated.
One of the most common examples that an IBC Company can be used is in International trading where is one of the most commonly used examples where a Cyprus IBC Company can be used.
An intermediary Cyprus IBC can be placed in between a Buyer and a Seller. In this way, taxable profits can be transferred from a high tax jurisdiction to one with low taxes. The trading continues with the goods moving directly from the seller to the final buyer and the documents through the intermediary Cyprus IBC company.
The addition of a Cyprus IBC in the commercial chain can be suitable for a seller or a buyer. Both the seller and the buyer can use an intermediary IBC to reduce taxes paid on the profits arising from the trading in their home countries.
It must be mentioned that the transactions with the intermediary company should be entered into on terms and conditions which could be obtained on an open market basis from independent third parties.
For trading within Europe it is necessary to register the company for VAT purposes. We can assist you to register with the VAT Authorities in Cyprus and we can administer the VAT documentation through our professional team and experts.
The advantages of Trading and Re-invoicing Cyprus IBC’s are the following:
MOVEMENT OF GOODS
Goods are not necessary to be physically delivered to Cyprus. They are delivered directly to their destination.
VAT registration in Cyprus with EU VAT registration number.
Trading profits will be subject to corporation tax at the rate of 12,5% after deducting all relevant expenses.
No withholding tax on dividends distributed to non-resident shareholders of Cyprus Companies.
No withholding tax on interest paid by a Cyprus Company to non-resident creditors.
For more information and guidance get in touch with our lawyers or email iMPK Global Business Law Firm – Cyprus Lawyers, at firstname.lastname@example.org .Tel. +357 99345000 – Fax +357 25 660097.