International Business Companies Trading in Goods and Services
A Cyprus International Business Companies can be used efficiently in trading activities, either in the form of purchasing and selling goods or receiving and providing services.
Any profit realized by the Cypriot company would be taxable at the rate of 12,5% with no further tax implications.
In addition, the profits accumulated can be paid out as dividends to the ultimate shareholder with no withholding taxes irrespective of the country of residence of the recipient or the existence of double tax treaty.
The Cypriot company conducting the trading activities would be able to obtain a VAT registration number but the physical delivery of the goods is not a requirement.