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.
Changing legislation of the British Virgin Islands will not make the offshore administration any more transparent. According to the sources of Midland Consult, owners of the companies registered in a popular offshore zone of the British Virgin Islands (BVI) recently received a letter with a requirement to disclose their company directors.
A couple of years of relative calm and the global economy is once again on the verge of recession. The risk of such scenario has increased and continues to rise, according to the recent reports of economists around the globe.