Cyprus Holding company 2011 - 2012 now has to pay 15% tax even if it is offshore?????

This was applicable in 2003 when our Tax law changed at that time. What is applicable today is the following:

We have 2 types of Cyprus companies, as far as their tax status is concerned. These are:

(a) A Cyprus resident company which is taxed at 10% on its profits.

(b) A Cyprus non-resident company which is not taxed.

The place where management and control of the company is exercised determines the residence status of the company. If the majority of the company Directors are Cypriots, then it can be assumed that decisions are taken in Cyprus and the company is Cyprus resident. This is why we use Cypriot nominee directors.

A Cyprus resident pays 10% tax, can get Cyprus Tax Resident Certificate and can distribute to its shareholders all remaining profits without any withholding taxes. Also the company can take advantage of more than 45 double tax treaties that Cyprus signed with various countries. It can get a VAT Registration number.

A Cyprus non-resident company, pays no taxes, but it cannot take advantage of the double tax treaties network and cannot get a Cyprus Tax Resident Certificate. It cannot get a VAT Registration number.

It is up to the particular circumstances of each individual investor to decide whether a Cyprus resident or non-resident company is suitable for his/her case.

I hope it is all clear now... so much nonsense out there....