Posts Tagged ‘law & taxes’

The Cyprus

March 25th, 2021

Paragraph 8 of art. the profits of a partnership evaluates explicitly as corporate profits within the meaning of the DBA, which shall be taxable only in the State where the company is located. Thus eliminates a tax of falling on the level of Cypriot partnership profits in Cyprus as well as in Austria. When the tax assessment of the in Austria to be taxable persons originating from the Cyprus limited partnership profits to determine of the correct tax rate added to the income of the taxpayer (progression reservation not however taxed =),. From the Austrian point of view, it is important that the resident in Austria shareholder of Cypriot society of person not dominant Influence on the management of the Cypriot person company has. A Cypriot limited partnership must have at least two partners, of which at least a partner must be unrestricted liable.

The Cyprus limited partnership, the limited partnership, where the general partner is unlimited liable, while the limited partners maximum shall be liable in the amount of their capital contribution is similar to that at this point. The fully liable partner is provided by us in form of a Cypriot limited company, which is involved in winning the limited partnership and is also no capital contribution. The limited company provided by us also occurs (in the internal relationship trust) as Managing Director of the limited partnership. The taxpayer in Austria as a limited partner “occurs. This will ensure the taxpayer has no dominant influence on the fortunes of the limited partnership in Austria.

In this context, it is important that in the Cypriot Partnership almost as occurring complementary Cyprus limited company has a proper facility. This is the case with the society provided by us. The Cyprus limited partnership holds 100% of the operational Cypriot limited company, which performs the operations. The operative limited company earnings are subject to in Cyprus of a corporation tax of 10%. The operative society limited their dividends completely on its shareholder pours out, namely the Cypriot company (= limited partnership). Are the dividends with no tax at the level of the operating company. Received dividends are not taxed at the level of the partnership since 1 the profits of a partnership (= limited partnership) in Cyprus not at the level of the partnership, but at the level of the shareholder are taxed (such as when a KG in Austria or Germany). Because the fully liable partner (= quasi-Komplementar) is not involved in the profits of the company, incurred no tax here. At the level of or the limited shareholder (= quasi limited partner) no tax liability on the income arises in Cyprus from the person society, since the limited haftende(n) shareholder not in Cyprus resident is or (are). In Austria, in turn said income from the Cypriot is not taxed partnership art.7 of the DBA also according to paragraphs 1 and 2. For questions and discussions we are gladly available. ETC Germany: Phone: + 49 40/822186470, fax: + 49 40/822186450 E-Mail: Neuer Wall 50 20354 Hamburg / Germany Internet: control designs for clients from Austria: Mandanten_oesterreich_steuergestaltung.pdf ranking tax models that expose of the tax office ETC: rangliste_steuermodelle.pdf