NEWS FROM CYPRUS: COMPANIES AND BANK

ACCOUNTS

BANKING SECTOR: CRISIS AND RESTORATION- In 2013, Cyprus has faced a deepening crisis that has necessitated drastic measures to resolve it. - Cyprus agreed to an ambitious reform programme, to

restore financial stability and to achieve sustainable public finances to support the recovery of economic activity

- Cyprus managed to OVER COME crisis and to RESTORE her reputation worldwide within 3 years

- Important Tax and Banking Safeguards have been introduced-Attractive Tax and ImmigrationSchemes have been inserted

WHY BANKING IN CYPRUS TODAY

Healthy and viable banking system Cyprus Economy is on track March 2016 - Cyprus celebrates early exit

of bailout program having spent only EUR 7.25bln of the EUR 10bln earmarked in the bailout

Now supervised by the European Central Bank (ECB) Banks have a high level of compliance with the statutory and

regulatory requirements Straightforward and efficient account opening procedure Remote account opening possible through approved regulated

introducers Over 30 years of experience as an international business hub

distinguished by the development of a wide range of legal, professional and financial services

Advanced infra structure

COMMON REPORTING STANDARDS

CLASSIFICATION AND OBLIGATION TO REPORT:CLASSIFICATION DEPENDS ON THE ASSETS, TYPE OF INCOME AND AMOUNT OF EQUITY HOLDERS1. ACTIVE FINANCIAL ENTITY (USUALLY HOLDING COMPANIES): NO REPORTING OBLIGATION2. PASSIVE FINANCIAL ENTITY: THE COMPANIES WHICH DO NOT QUALIFY AS AN ACTIVE FINANCIAL ENTITY. -THERE IS OBLIGATION TO IDENTIFY CONTROLLING PERSONS(PERSONS WHO ARE OWNING MORE THAN 25%)-IF THEY COMPANY WOULD BE CONSIDERED AS AN INVESTMENT ENTITY/INVESTMENT VEHICLE, THE COMPANY WOULD BE SUBJECT IN FULL TO THE DUE DILIGENCE AND REPORTING OBLIGATION- THE CLASSIFICATION IS PROVIDED BY SELF-CERTIFICATION

PREDICTIONS AND PERSPECTIVES FOR 2017

- ECONOMIC GROWTH AT LEAST 2.8%- UPGRADING OF LARGER DOMESTIC BANKS BY INTERNATIONAL

RATING AGENCIES- CAPITALIZATION AND CONSTANCY OF BANKS - PROVISION OF LOANS-IMPROVEMENT TO BANKING SECTOR- ATTRACTION OF FOREIGN INVESTMENTS- CYPRUS HAS DISCOVERED SIGNIFICANT RESERVES OF NATURAL GAS. DRILLINGS WILLSTART IN 2019 -UPGRADE OF CURRENT SCHEMES (CITIZENSHIP,NON-DOM AND IP REGIME)

CITIZENSHIPCyprus has established and revised a "Scheme for Naturalization of non-Cypriot investors by exception" BENEFITS:-Straight forward and fast procedure- Clear requirements -Travel, work, study, live and operate a business throughout the European Union-Citizenship is also granted to the Investor’s spouse; All financially dependent children under the age of 28 and to the investor's parents-There is no need to reside in Cyprus after obtaining the citizenship-Cyprus allows multiple citizenship and Cypriot passport holders are allowed to travel to 159 countries without the need of a visa-Wonderful climate, clean environment and sandy beaches-Cyprus offers an English speaking environment where the people are warm and welcoming. It is also a safe and secure destination as Cyprus has one of the lowest crime rates in Europe

CITIZENSHIP: CRITERIA AND PROCEDURE - Investment between €2- €2.5 million - Wide range of Investment options -The applicant must purchase one

residential property of at least €500.000 -Investment has to be retained for a period of just 3 years. It can then be released. Residential property must be kept for a life time- The applicant must have clean criminal record

-The applicant prior to his/her naturalization as a Cypriot citizen must hold a residence permit in Cyprus-The documents are submitted to the Ministry of Interior for examination

NON DOMICILE REGULATIONS

-With the introduction of “non-domicile” rules, an individual who is a Cyprus tax resident and is not domiciled in Cyprus will effectively not be subject to SDC in Cyprus. -The term “domiciled in Cyprus” is defined under the Law as an individual who has Cypriot domicile of (a) origin and (b) by choice. The person obtains the domicile of choice provided that he has an intention to settle in Cyprus permanently.The main requirements are:(a) an individual who has obtained and maintained a domiciled of choice outside Cyprus, provided that such an individual has not been a tax resident in Cyprus for a period of 20 consecutive years preceding the tax year; or(b) an individual who has not been a tax resident of Cyprus for a period of 20 consecutive years prior to the Implementation of the law. 

IP REGIME:CYPRUS IDEAL LOCATION The ideal location to establish an IP structure is one that can serve the

organisation’s business strategies and protect its IP and contribute to its tax optimisation

Cyprus offers an efficient IP tax regime coupled with the protection afforded by EU and by the signatories of all major IP treaties and protocols.

Tax BENEFITS of Cypriot IP companies:• 80% of worldwide royalty income generated from IP owned by Cypriot resident companies (net of any direct expenses) is exempt from income tax • 80% of profit generated from the disposal of IP owned by Cypriot resident companies (net of any direct expenses) is exempt from income tax • any expenditure of a capital nature for the development of IP is claimed as a tax deduction in the year in which it was incurred and the immediate four following years on a straight-line

 CYPRUS COMPANIES: SUBSTANCE AND BENEFITS=> Cyprus is a LOW TAX jurisdiction. A foreign structure when found to lack substance, could face higher tax burden and investigations by the tax authorities.=> STEPS to achieve substance: Have an office space / premises / physical address with

telephone and fax line; Qualified and knowledgeable directors and managers who are

located and employed in Cyprus; Its accounting records maintained in Cyprus; Operative local bank accounts with local signatories; Board meetings to be held in Cyprus; An independent local email address and/or website

CYPRUS COMPANIES: SUBSTANCE AND BENEFITSBENEFITS Payments of dividends, interest and royalties to non residents

are not subject to any withholding tax Profit from dealing in securities is tax free. (This includes

trading in securities in Cyprus as well as overseas markets) Less transfer fees on purchase of properties Large network of tax treaties with very favourable clauses.

Many of the treaties impose low or nil withholding tax on dividends, interest or royalties at source

European Union parent subsidiary directives apply Registration for V.A.T. for E.U. transactions Low income tax (12.5% on the net profit)

OXFORD MANAGEMENT- OUR TEAM√ is comprised of multilingual professionals that are experts within their field √ provides quality investment advice and consultation √ will formulate an appropriate strategy suitable to your specific needs and demands√ is responding immediately to your requests √ offers a wide range of services√ Confidentiality and support through the whole process

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