Where Does Management And Control Lie?

This short note is dedicated to the test of residency in Cyprus for the purposes of taxation.

It should be kept in mind that the test of management and control has never been defined but the rough guidelines still exist and to satisfy the test of residency the following issues must be taken into account:

                    a.      There is no legal requirement to have majority of the Board of Directors in Cyprus;

                    b.      To be able to come under the ambit of Cyprus local tax laws or be able to reap the advantages of the DTT network, a company should be a tax resident for the purposes of local tax legislation;

                    c.       In turn local tax laws states that the residency is where the "management and control lies";