Cyprus
Company Formation Services

Corporate Taxation In Cyprus
Advantages to Register In Cyprus

Taxation

Cyprus offers one of the most attractive tax regimes in Europe. A member of the European Union since 2004, Cyprus’ regulatory regime is in full compliance with the requirements of the EU and OECD. Cyprus has one of the lowest corporate tax rates in the European Union at 12.5%. The island’s advantageous tax rate coupled with an extensive list of double tax treaties places it high on the list of preferred jurisdictions for international tax planners.

All Cyprus tax resident companies are taxed on their income accrued or derived from all chargeable sources in Cyprus and abroad. A non-Cyprus tax resident company is taxed on its income accrued or derived from business activity carried out through permanent establishment in Cyprus and on certain income arising from sources within Cyprus.

A company is considered as resident in Cyprus if it management and control is based in Cyprus.

Foreign taxes paid can be credited against the corporation tax liability.

Corporate tax rate for all companies is 12,5%.

Type of income	Exemption limit
Profit from the sale of securities	The whole amount
Dividends	The whole amount (*)
Interest not arising from the ordinaryactivities or closely related to theordinary activities of the company	The whole amount (**)
Profits of a permanent establishmentabroad, under certain conditions	The whole amount

Notes:
(*) Dividend income may be subject to Special Contribution for Defence;
(**) Interest income is subject to Special Defence Contribution;

Fixed Annual Levy

On 26th August 2011 The House of Representatives of Cyprus announced a fixed Annual Levy of €350 per annum on all companies which is payable by the 31st December each year. Non-payment of the levy may result in deregistration by the Cyprus Register of Companies.