Taxes in Cyprus, Taxation in Cyprus, Taxes system in Cyprus
Income tax from individuals
For tax purposes shall be considered residents of the Cypriot people living in Cyprus for the tax year more than 183 days.
Residents pay personal taxes on its income (the country and abroad). Non-residents pay taxes only on income generated in Cyprus.
Effective tax rate progressivity of personal income: income from 0-10.000 £CYP year - without a tax £CYP 10,001 to 15,000 - the rate of 20% from 15,001 to 20,000 £CYP - the rate of 25% over 20,001 £CYP - the rate of 30%.
2.4.2. Taxes on Goods and Services Tax
Principles of the VAT are the same as in Poland.
The basic VAT rate is 15% in Cyprus.
Reduced at a rate of 5% fall in the following groups of goods and services: ice cream and products lodopodobne, dry nuts, potato chips, packaged cereal products (not processed), books, newspapers and magazines, gas cylinders, water (not bottled), passenger transport in urban and rural areas, catering services (restaurants) and hotel (accommodation) - to 01.01.2008 on
Zero-rating are covered: pharmaceuticals - to 01/01/2008, food - to 01/01/2008.
Exempt from VAT turnover is building lots.
From 5.1.2004 was introduced 15% VAT on sale of real estate (land and new building). However, if this is the first buyer bought the property VAT is 5%.
2.4.3. Other taxes and local fees
In the field related to economic activity - as of 1.05.2004
Income Tax CIT
Cypriot tax resident (CRP) within the meaning of tax law are the legal entities (companies) that have the Board (Management and Control) in the territory of Cyprus. Companies that meet the criteria for CRP in Cyprus pay corporate income tax (corporate income tax) on all their income, regardless of where their achievement. Companies that are not of CRP, but with the establishment in Cyprus (permament establishment), CIT pay tax only that part of the revenue that is generated from Cyprus.
Companies that do not have offices in Cyprus (although that is registered in Cyprus) and are managed and controlled from Cyprus, but do not have headquarters here and do not keep business here in Cyprus are not liable to pay corporate tax.
Corporate tax rate for all subordinate companies that tax revenue is 10%.
Dividends paid by a Cyprus company to its shareholders - non-Cypriot resident (Residents of non-Cypriot), are not taxable.
Cyprus Dividends paid residents charged are a 15% tax "defensive (defense Contribution).
Interest payments (deposits and accounts in Cyprus) are not taxed - unless, shall be paid to a non-Cypriot resident. The interest is paid Cypriot resident charged are 10% tax "the defense."
Dividends paid by a foreign company to company statutes aimed Cypriot CRP are generally exempt from tax in Cyprus, provided that the Cyprus company holds at least 1% of the shares (capital) a foreign company.
Cypriot companies profit from trading in securities is exempt from tax.
Exempt from tax receipts are also royalties (royalities) provided by foreign licensees.