PrintPrint Close Close

Republic of Cyprus
Tax Rates

Tax Rates for Income Tax from 1991

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, after 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 form 2008

Tax Year
2008 -2011
2011 onwards
0%
0 – 19 500
0 – 19 500
20%
19 501 – 28 000
19 501 – 28 000
25%
28 001 –36 300
28 001 – 36 300
30%
36 301 and over
36 301 -60 000
35%
-
60 001 and over

Legal Persons

Corporation Tax up to 2007

£
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)

For the years 2008 to 2012 companies pay tax on all their income at the rate of 10% (4)
From 2013 companies pay tax on all their income at the rate of 12,5%


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:
  1. 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
  2. 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 salaris 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 soucres of income stated below:

Article of
L.118(I)/2002
Type of Payment
Rate of Tax
21
The gross amount of any royalty, premium, compensation or other income derived from sources within the Republic by any person not being resident in the Republic, who is not engaged in any business in the Republic, in consideration for the use of, or for the privilege of using, any copyright, patent, design, secret process or formula, trade mark, know-how or any other like property or in consideration of technical assistance. 10 cent in the £1
17 cent per €1,71
22
The gross amount of any rental in respect of the show in Republic of cinematograph films derived by any person who is not resident in the Republic 5 cent in the £1
9 cent per €1,71
23
The gross income derived by an individual not resident in the Republic from the exercise in the Republic of any profession or vocation, the remuneration of public entertainers not resident in the Republic, and the gross receipts of any theatrical or musical or other group of public entertainers, including football clubs and other athletic missions from abroad, derived from performances in the Republic 10 cent in the £1
17 cent per €1,71






Back

Last Modified at: 12/12/2017 01:20:24 PM
 
Copyright © Republic of Cyprus 2014 - 2017,
Ministry of FinanceTax Department
Designed and Developed by the Department of IT Services