Holding and trading in securities

Holding and trading in securities has a number of tax incentives in Cyprus. The following are relevant: Gains from disposal of titles qualifying as securities are not taxable. Titles, as per the Income tax law, include: Ordinary shares. Preference shares. Founder’s shares. Options attached to on titles. Debentures and bonds. …

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Taxation of dividend income

Taxation of dividend income arising from hybrid instruments Dividends payment were in certain cases treated as tax deductible dividend paying company due to classification of the instrument as hybrid one (i.e. preference share capital). Also previously, any dividends received were unconditionally exempt from income tax in Cyprus. After the amendment, …

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