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Business Taxation
Corporation Tax

Corporation Tax

Basis of taxation
Companies that are tax resident in Cyprus are subject to tax on their worldwide income whether remitted to Cyprus or not.

Companies that are non tax resident in Cyprus are subject to tax only on Cyprus source income as well as on the profits of a permanent establishment.

Corporate income tax is levied on all types of income of corporate bodies which includes income from trading and manufacturing activities, royalties, rental and agricultural business.

The taxable income is based on income from all sources with all outgoings and expenses wholly and exclusively incurred in the production of that income being allowable as deductions. Certain allowances are given for wear and tear allowances on the use of business assets.

Tax is assessed on net income on a current year basis. The income tax year in Cyprus is the calendar year. An estimate of the tax due must be made by 1 August in the year of assessment and the estimated tax must be paid in three equal installments on the 1 August, 30 September and 31 December.

Corporation tax rate for all the companies is 10%

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