1. Tax on capital contributions
Cyprus
Registration of a limited company is subject to a registration fee of EUR 105 plus capital duty of 0.6% of the authorized capital and of any subsequent increases in authorized capital, apart from increases in connection with a qualifying reorganization. An annual company maintenance fee of EUR 350 is payable to the Registrar of Companies.
Notional interest deduction
For 2015 and subsequent tax years a notional interest deduction (‘NID’) is available on new equity capital introduced into companies and permanent establishments of foreign companies. The NID is limited to 80% of the taxable profit before deducting the NID, and no NID will be allowed in the event of losses. Unutilized NID cannot be carried forward to be offset against future years’ profits.
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Previously published by Loyens & Loeff
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.
