Advantages of the Cyprus Economic Zone for Russian Companies Part - 1

Nicosia, 27 June 2008 - Cyprus is one of the most advantageous places of residency for Russian and Ukrainian companies. It offers a high level of banking, auditing, accounting and legal services, as well as its real estates, which developed Cyprus into a successful international business and financial centre.
Some of the main factors and advantages which secure Cyprus’ attractiveness to international businesses and investments are the following:

1. 10% corporate tax rate for business profits;

2. No withholding taxes imposed on dividends, interest and royalties for non-residents (whether a company or an individual);

3. Income from dividends is exempt from income or corporation tax;

4. The attractive platform and tax regime that Cyprus provides for a holding company (i.e. subject to certain conditions full exemption from local taxation in respect of dividends received by a holding company from its local and foreign subsidiaries);

5. The attractive platform and tax regime that Cyprus provides for international trusts;

6. The network of favorable double taxation treaties that Cyprus maintains with more than 40 countries including Russia and most of the ex Soviet Union Republics;

7. Tax advantages available to non-residents including non - E.U. residents;

8. Cypriot tax regime permits losses to be carried forward indefinitely;

9. The geographic location of Cyprus, located at the crossroads of Europe, Asia and Africa;

One of the mentioned above factors is a double taxation treaty between Russia and Cyprus, which provides to Russians many tax advantages. Agreement was signed between Russia and Cyprus for the avoidance of double taxation with respect to taxes on income and capital, back on 17 August 1999. The treaty provides for either the exemption of income in the source country or the provision of tax credit in respect of the foreign tax paid by the country of tax residence.

By John Neocleous

To be continued

NEOCLEOUS & NEOCLEOUS LAW FIRM WILL REPRESENT CYPRUS FAMILIES BEFORE THE EUROPEAN COURT OF HUMAN RIGHTS IN STRASBOURG

Nicosia, Cyprus, June 1, 2008 - The case of Onoufriou v Turkey is part of a number of pilot Cases brought upon by Greek-Cypriot refugees against the Turkish Government and will be presented by Mr. Andreas Neocleous and Mr. Ioannis John Neocleous before the European Court of Human Rights in Strasbourg.

On April 23rd 2008, the European Court of Human Rights (ECHR) decided that the applicant could not be deemed to have lost entitlement to his property.

Displaced Greek Cypriots such as the applicant may apply for compensation to the Court for losses due to the denial of access to and loss of control, use, and enjoyment of his property.

Thirty-two petitions of Greek Cypriot refugees against Turkey have been accepted by the European Court of Human Rights and will be examined soon.

Eight more applications will follow, which are considered pilot cases for determining the future of the so called compensation committee. This committee has been set up in the Turkish occupied areas of Cyprus, and it hopes to become an effective domestic remedy for Greek Cypriots, who must first apply with regards to claims on their property.

Apart from the above cases, 1.500 additional petitions are pending before the ECHR. The Court decided to freeze them in view of the decisions to be taken regarding the eight pilot cases.

Cyprus has been divided since 1974 when Turkey invaded and occupied its northern third.

At the present time, Neocleous & Neocleous Law Firm (NCI Law Group’s Cyprus Office) is handling over 15 cases which are currently under the consideration of the European Court of Human Rights (ECHR).

- By John Neocleous