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BENEFITS TO YOUR INVESTORS
from My first document
by Prudens Ltd
Listing your corporate Bonds on the CSE also benefits your investors:
Greater Marketability and liquidity
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Easier to liquidate investments in listed securities vs. private investments.
Tax Benefits for Investors
In Cyprus, profits from the sale of securities are exempt from income tax.
Income from interest received is exempted from income tax for Cyprus Tax Residents. However, interest received by a person in the ordinary course of business, is not exempt but used in calculation of income tax (natural person) or corporate tax (legal person).
Cyprus Tax Residents are subject to a Special Defence Contribution (SDC) of 3% on interest received from Corporate Bonds of listed companies. If the Company’s bond is not listed on the CSE, the SDC is at 30% of interest received. However, interest received by a person in the ordinary course of business is not considered interest but income and is not subject to SDC.
Non-Cyprus Tax Residents are exempted from SDC.
