Individuals – Income Tax
|
%
|
Tax Years
|
||||||
|
1991 – 1995
£ |
1996 – 1999
£ |
2000 – 2001
£ |
2002
£ |
2003
£ |
2004 – 2006
£ |
2007
£ |
|
| 0% |
0 – 2.000
|
0 – 5.000
|
0 – 6.000
|
0 – 9.000
|
0 – 9.000
|
0 – 10.000
|
0 – 10.750
|
| 20% |
2.001 – 4.000
|
5.001 – 8.000
|
6.001 – 9.000
|
–
|
9.000 – 12.000
|
10.001 – 15.000
|
10.751 – 15.750
|
| 25% |
–
|
–
|
–
|
–
|
12.001 – 15.000
|
15.001 – 20.000
|
15.751 – 20.600
|
| 30% |
4.001 – 8.000
|
8.001 – 11.000
|
9 001 – 12 000
|
9.001 – 12.000
|
15.001 +
|
20.001 +
|
20.600 +
|
| 40% |
8.001 +
|
11.001 +
|
12.001 +
|
12.001 +
|
|||
Legal Persons – Corporation tax
|
£
|
1991 –1995
|
1996 – 2002
|
2003 – 2004
|
2005 – 2007
|
| 0 – 40.000 |
20%(1,2)
|
20%(1,2)
|
10%(3,4)
|
10%(3,4,5)
|
| 40.000 – 100.000 |
25%(1,2)
|
|||
| 100.001 – .1000.000 |
25%(1,2)
|
|||
| 1.000.001 + |
15%(5,6)
|
Corporation Tax Notes
1 For tax years up to 2002 an additional tax of 10% is imposed when the taxable income is reduced due to losses of prior years, deductions for investments and deductions for the depletion of a mine are given.
2 International activity companies are taxed at the rate of 4,25%. During the year 2002 an additional tax of 10% on taxable income is imposed on public corporate bodies.
3 International activity companies that elected for transitional tax (7) rules are assessed at 4,25% instead of 10% for years to 2005.
4 Public corporate bodes are assessed at a rate of 25% instead of 10% up to tax year 2008.
5 International activity companies that elected for transitional tax (7) rules rate assessed at 4,25% instead of 15% for the years to 2005.
6 Public corporate bodes are assessed at a rate of 35% instead of 15%
7 The option for the transitional provisions relates to international activity companies that:
-
- Had income from sources outside the Republic during the tax year ending 31/12/2001 or are expected to have such income that has not arisen, due to the nature of its activities, up to 31/12/2001 and
- Continue to have income exclusively from sources outside the Republic. The option is
- irrevocable
- applies to tax years 2003-2005
- Companies that make this option are not allowed to claim
- the exemption of 50% of interest income
- The exemption of dividend income (except in the case where the dividend is between companies which have the same status i.e. they have both elected for the option)
- the exemption for profits on the sale of titles
- Group relief of losses
- Tax benefits from re-organisations
- Credits for foreign tax (except where there is a Double taxation Treaty in force.)
- Exemption for the profits of a permanent establishment overseas
- losses that arose during any year up to and including the year 2000 will not transferred and offset with income of any tax year after the passing of 5 years from the end of the tax year in which they occurred.
Theodorou Law is a Cyprus law firm with Cyprus lawyers and other legal experts on legal matters involving Cyprus law, EU law and international law. The above should be used as a source of general information only. It is not intended to give a definitive statement of the law and is subject to the disclaimer
Our firm routinely answers queries from individuals and corporate clients on tax law. If you have a query or wish to receive further information, please contact us using [email protected]
