Cyprus in European and International Business
Prior to its accession to the European Union on May 01, 2004, Cyprus has reformed its tax system by removing the label of an "offshore centre" and of a "tax haven". Nowadays Cyprus prides itself as an International Financial Centre fully compliant with EU laws and Directives, FATF, the Code of Conduct of the OECD on harmful tax practices, AML Regualtions. The new tax regime which became effective from 1 January 2013, provides for a 12,5% Corporation tax for all companies registered in Cyprus, which is still one of the lowest in the European Union. This regime, coupled with an extensive network of favorable double tax treaties, enabled Cyprus to develop into one of the most successful International, financial and commercial centres in Europe.
Despite all the statements of the Russian officials about an ongoing de-dollarisation, its further extent is under question. Experts have strong doubts that the policy will carry on at a hefty pace. The share of transborder settlements in national currencies is small, as these currencies are volatile and the governments are not prepared to switch to using them. The only alternative is to continue converting export contracts into euros. However, this is not to Europe's benefit on a large scale, as it leads to the strengthening of the European currency and thus affects the cost of export from the EU.
Despite the numerous shortcomings of the economic and business climate, compared to other countries Russia is a safe haven for investment. Such was a joint opinion of the Russian and foreign participants of the Moscow Exchange Investment Forum in New York. The potential investors look at macro indicators, which set Russia among the most reliable of the emerging markets, experts commented.