[John Lenin]

The distinction between Cyprus local companies and Cyprus non-resident (i.e. offshore) companies will not exist any more. All Cyprus companies will be taxed at the profit tax rate of 10%. Non-resident Cyprus companies which started their activities before 31 December 2001 can choose between the old advantageous rate of 4,25% and the new 10% rate. The 4,25% tax rate may be used latest until the end of 2005.

• Dividend income both from Cyprus and from abroad is wholly exempt from the profit tax.

• The dividends, interest payments and royalties paid to non-residents of Cyprus are free from withholding tax.

• Profits earned from the foreign branches of Cyprus companies are wholly exempt from profit tax.

This is not a problem, because all our clients will use a Delaware offshore company to minimize the taxable profit of the Cyprus company.

Mode of Payment: The fees will have to be paid prior to initiating the registration procedure.

Bank Accounts. We will act on the client's behalf to open the required Bank Accounts at Barclays Bank PLC Cyprus.

Computerized Accounting System. Our Firm provides a Computerized Accounting System exclusively for the use of our International Clients where we keep their accounts. This service is chargeable and depends on the volume of work.

ORDER your Cyprus Company

[1rudeboy]

U.S. corporations are taxed on their world-wide income. When a U.S. corporation executes a corporate inversion and incorporates in, say, Bermuda it does so to avoid paying U.S. taxes on income it earns overseas. It still pays income tax on income effectively connected to the U.S. In other words, corporate inversions are a method to avoid paying tax on money that never "belonged" to the U.S. Treasury in the first place.