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.
According to the Central Bank of Russia (CBR), private clients have significantly reduced foreign transfers in recent months. With the economic crisis continued, Russians and non-resident foreign workers cut back to half the transfers of funds from Russia.
The Organisation for Economic Cooperation and Development (OECD), sometimes referred to as the ’Club of the rich’, analysed the income gap in the developed countries and its negative effects. As economists observe, the gap between rich and poor hit a historic maximum for the past 30 years.