Cyprus in International Tax Planning
Prior to its accession to the European Union on May 01, 2004, Cyprus has reformed its tax system by removing the label of an offshore centre and a tax haven. Cyprus prides itself as an international financial centre fully compliant with EU laws and Directives, the Code of Conduct of the OECD on harmful tax practices. The new tax regime which became effective from 1 January 2013, provides for a 12,5% Corporation tax for all companies registered in Cyprus, which is the lowest in the European Union. This regime, coupled with an extensive network of favorable double tax treaties, enabled Cyprus to develop into one of the most successful International, financial and commercial centres in Europe.
The relevant bill was passed by 47 votes following days of a well heated debate. Seven deputies voted against and one abstained. Approval of this bill removed any concerns of the external creditors who threatened to refuse the payment of the next tranche of the international financial aid to the island, should the parliament have the regulation cast off.
Companies registered in «aggressor-states», and their subsidiaries, will not be allowed to operate in Russia. State Duma deputies intend to introduce a new concept in the Russian legislation: «aggressor state». According to some deputies, the law will stipulate that an «aggressor state is the one imposing sanctions against the Russian Federation, Russian citizens and Russian legal entities».