Why Russian Oligarchs Are Laughing Off The Cyprus Haircut
REUTERS/Ho New
"You must be out of your mind!" snapped tycoon Igor Zyuzin, main owner of New York-listed coal-to-steel group Mechel, as he dismissed a suggestion this week that the financial meltdown in
If Zyuzin isn't enough, there's also Mikhail Fridman, the #50 richest man in the world according to Bloomberg's Billionaire Index. Yesterday he scored a major payday selling his part of oil company TNK-BP to Russian state oil firm Rosneft, netting $5.1 billion.
Part of his Fridman's investment firm, Alfa Group, is based in Cyprus. The entity is called Alfa Capital Holdings, and here's what's been on their website all week.
According to Reuters, now that the oligarchs have moved out, its likely that upper middle class/entrepreneur types will feel most of the pain if the Cyprus tax is enacted.
Part of that is because there's no penalty to move money out of Cyprus. There's no tax on transferring shares of a Cyprus company and there's no withholding tax charged on dividends moving from a Cypriot company to its EU parent company.
So Russian oligarchs have entities in Cyprus and in other
Take
He also has a British Virgin Islands holdings company USM Holdings, according to Bloomberg.
Cyprus has no capital gains tax and holding companies are not subject to any withholding tax on dividends, but there's is a 10 percent tax on income, whereas there's no corporate income tax in the British Virgin Islands.
You do the math.
- 6 reasons why you should visit Ladakh this summer
- TVS iQube gets a new variant priced under ₹1 lakh, ST variant gets a bigger battery
- As English players begin their premature IPL exodus, Gavaskar calls for action against England Cricket Board
- Top 10 destinations for river rafting in India in 2024
- Should you enrol your child in an online university like IGNOU?
- Nothing Phone (2a) blue edition launched
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market