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 fact that the gap between the planet’s richest and poorest is wide enough to be estimated over ten-fold, does not surprise anyone today. The saddest fact is that the gap keeps growing. Proof is found in the recent research sponsored by the banking institutions.
A law on succession is under consideration in the Russian parliament. Last spring, the State Duma introduced a bill offering to adopt such concepts as a ’joint will’ and ’hereditary contract’, simplifying the succession procedure.