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Taxation in Cyprus

  • Incorporation time: 8 days
  • Shelf companies: Yes
  • Accounting: Yes
  • Secretary: Yes
  • Nominee Shareholder: Yes
  • Nominee director: Yes
Tax 0%
(12,5% for companies managed in Cyprus)
1 € = 1.35 USD

Cyprus Tax Rates

Cypriot companies are taxed at a rate of 10% and 20% for a company’s immovable property assets. Moreover, certain actions are not subject to tax, such as the sale of immovable property and income from interest and dividends.

VAT is normally charged at 19% but this rate is reduced to 8% for hotel services, taxis and buses, and 5% for gas, newspapers, books and pharmaceutical products.

Personal income tax is progressive and is levied in accordance with the following table:

Personal income (EUR) Tax rate
0 to 19,500 0%
19,501 to 28,000 20%
28,001 to 36,300 25%
36,301 and above 30%

Reducing the amount of tax to be paid is possible since deductions are allowable for donations to charities, rental income, insurance and life insurance contributions and premiums.

Link: Cyprus Tax Office

Accountancy Requirement in Cyprus

The tax year in Cyprus runs from 1 January to 31 December, and European Union and international accounting standards apply.

All companies must prepare accounts including a balance sheet and profit and loss accounts and both must be filed with the Companies Register. Financial statements must contain: the sales and purchases of assets, debts and credits and payments and expenditure and must be audited.

Links :
Companies Register
The Institute of Certified Public Accountants of Cyprus

 

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