Offshore E-Commerce Activities
The natural bonding of the Internet and Offshore stems from the fact that both, of their nature, manage to avoid tax. Businesses which can operate on the Internet without, so to speak, touching ground in a high-tax jurisdiction will naturally migrate to offshore jurisdictions; while business that already have offshore existence will find it highly convenient to be able to use the Internet to trade with their high-tax customers without having to make a landing in their countries.
As a major offshore jurisdiction with tens of thousands of offshore enterprises already installed, including many trading companies, it is only a matter of time before Cyprus becomes a centre of e-commerce activity. The island's geographical location, its good telecommunications links and its sophisticated business infrastructure add to the likelihood of a strong e-future for Cyprus.
However, the effective abolition of Cyprus's offshore regime as a consequence of its entry to the EU, and the introduction of a uniform 10% rate of corporation tax have likely also had an impact on the attractions of Cyprus as an e-commerce base as compared with truly offshore jurisdictions.
For information about the impact of e-commerce on a number of the main offshore activities which take place in Cyprus, click on a link below to go to our specialist E-commerce site Offshore-e-com.com
To see an analysis of the current state of legal and tax issues surrounding offshore e-commerce, click here.