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.