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]
