Income Tax for Companies
Any company that is considered to be a resident in Cyprus is taxed on its income accruing or arising from sources within and outside Cyprus.
A company is considered to be a resident in Cyprus if it is managed and controlled in Cyprus.
A company that is not a resident in Cyprus is taxed only on income accruing or arising only from sources in Cyprus.
Corporate Tax Rate
| Companies | 12.5% |
Exemptions
- Interest income – The whole amount from 2009 onwards
- Dividend income – The whole amount
- Profit from the disposal of securities – The whole amount
- Profit of a permanent establishment abroad, under certain conditions – The whole amount
Tax Losses
Loss from one source of income can be set off against income from other sources in the same year. Any loss remaining after the set off is carried forward for relief over the next 5 years.
Group losses can be set off only with respect to profits arising in the corresponding year of assessment. Companies should be members of the same group for the whole year of assessment.