Cyprus Offshore Companies Have Ceased To Exist

tax       2003-01-09 
Cyprus customs officials confirmed this week that offshore companies and their expatriate employees on the island would no longer have the benefit of being able to import duty-free cars, often worth up to half the cost of a vehicle.
'The rights of acquiring duty-free cars are eliminated from January 1st', said an official, adding that applications received before the end of December, 2002, would be processed as before, with the duty exemption being granted if applicable.
The change is part of measures taken by Cyprus to give equality of treatment to domestic and foreign companies, as required by the European Union and the OECD. As from January 1st a uniform corporation tax rate of 10% applies to all companies, although established offshore companies can continue to pay the old 4.5% rate of corporation tax until the end of 2005, if they choose.