General
1. The taxable earnings, where imported into the Republic, from the export of locally made or produced products (excluding petroleum product), are taxable up to the 2002 at ½ rates.
2. Companies which introduced shares into the Cyprus Stock Exchange for the first time, following the 10.7.1998, are taxable for the 4 tax years that followed the year in which their shares were introduced, with ½ rates, with a maximum benefit of £100 000, until the year 2002.
Individuals
Tax years from 1991 – 2007
|
% |
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 and over |
20 001 and over |
20 600 and over |
| 40% |
8 001 and over |
11 001 and over |
12 001 and over |
12 001 and over |
|||
Tax years from 2008
|
Tax Year |
|
|
€ |
2008 onwards |
|
0% |
0 – 19 500 |
|
20% |
19 501 – 28 000 |
|
25% |
28 001 – 36 300 |
|
30% |
36 301 and over |
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 and over |
15%(5,6) |
From 2008 companies pay tax on all their income at the rate of 10% (3,4,5)
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:
(a) 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
(b) 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.
Deduction of Tax at source
Tax at sources is withheld from the sources of income stated below:
1. From salaries and wages of natural persons resident in the Republic in accordance with Rule 6 of the Income Tax (deduction from emoluments) Rules of 2003.
2. From persons not resident in the republic from sources of income stated below:
|
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.
Further Tax Law related information is available here.
