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Cyprus – the lowest taxed country in the European Union
03/06/2005 @ 08:36
Cyprus – the lowest taxed country in the European Union
The well-known financial magazine Forbes annually measures the tax burden of a number of countries called the Misery Index. Compared to the previous survey Cyprus has replaced Ireland as the country within the European Union that offers the lowest overall burden of taxation.
Globally, Cyprus is ranked as the third lowest taxed country of the 50 countries included in the survey.
The index measures the taxation of corporate income, personal income, wealth tax, employer Social security, employee Social security and VAT/Sales tax.
The country with the highest overall taxation of all countries is France. France received 174.8 points in the survey compared with Ireland 90,3 and Cyprus 74,3. The lowest overall taxation has the United Arab Emirates UAE, which scored 18,0 points only.
Please click on the below link to access the complete chart from forbes.com
When studying the chart, please note that for Cyprus the level of corporate taxation is set at 15%. For 2004 the taxation in Cyprus is 10% up to a net income of 1,000,000 Cyprus pounds and 15% for net income exceeding 1,000,000 Cyprus pounds. From 2005 the additional 5% will be abolished and the rate will become a flat rate of 10% for all income.
Malta received a scoring of 105,0 points however this does not take into consideration the refund applicable in the case of non-resident shareholders which reduces the effective tax burden to 4,17% for Maltese trading companies and as low as 0% for Maltese Holding companies.
The results further underline Cyprus and Malta’s attractiveness as financial centres for International companies and Businessmen in search of correct ways to utilize international tax planning in order to minimize the level of taxation.
Related:
http://www.forbes.com/global/2004/0524/074chart1.html
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