Genshape Management and tax regime provides a comprehensive solution to capital markets traders irrespectively the type financial instrument are investing in.
As a trader the last thing you would like is have the taxman have a share of the tough work by taking a bite on the returns on investment for the year. Since history is not an indicator of future returns, it would be wise to protect those gains from trading.
The process to safeguard profit from taxman and selecting a financial instrument for trading, have similar steps with that of trading and the first would be, make your research and have a plan prior to entering into a trade. In other words select an appropriate vehicle to use for trading
It does not make any difference whether your trading using trading robots or you enter manually into trade. In addition we offer solution for customer that would like to have say a UK company but that company can be taxed in Cyprus instead of UK.
Should the trading account be opened in traders name or to a company's name?
It would be unwise to use the strategy 'sell the news and learn the details later' for the selection of a trading vehicle, since this plan is more appropriate for uncertain downside events rather than a proactive tax planning. The second one is that a company can be setup in any part of the world compared to the unique existence of a physical person. Having an intermediate owning the financial instrument is in essence an indirect control of these instruments.
One of the two main differences between physical and legal person is the tax regime applicable during a calendar year.
In summary Cyprus tax regime does Not effectively tax gains derived from capital market trading activities. The complete list of financial instrument is presented below:
Extraction of profits
Cyprus does not levy any withholding tax on dividends paid out to physical and legal person resident outside the small island. If the capital route is preferred then no tax arise in Cyprus in respect of share sale
Dividend income
For the dividend income investor, Cyprus offers a wide solution with double tax treaties with more than 50 countries. Please see Tax Treaties pages for more detail information
FX Brokers – Corporate account
Our solution provides support for the new account opening with your existing broker or the new broker. The procedure of your broker to transfer existing assets to your new account should be fairly easy and straight forward.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
