addition it has the following social and geopolitical facts:
• Strategic geographical position in the centre of three continents, Europe,
Asia and Africa.
• Very high literacy rate and the highest proportion of university graduates
in the EU
• Highly skilled labour force
• Wide use of the English language
• Legal system based on the British pattern
• Excellent infrastructure and communications network.
• Very low crime rate and attractive tourist destination.
|TAX FACTS AND FIGURES
Below you can find some general data and information about personal and business taxation rules which apply in Cyprus.
The following types of income are exempt from income tax:
Profits on disposal of titles ( as per the list published by the Inland
There are also a number of allowable deductions from the taxable income of individuals, which in general are:
subscriptions to trade unions and professional associations
The following types if business income, are exempt from taxation in Cyprus:
The following is a list of commonly accepted allowable deductions in arriving at the taxable income of a company:
Group relief on trading losses is allowed between Cyprus resident companies which are members of the same group (with at least 75% control) for the whole year. Only current year group trading losses can be surrendered from one group company to the other.
The above are a general guideline on the main
rules and regulations applying in Cyprus.
MOST ATTRACTIVE TYPES OF CYPRUS COMPANIES
Most commonly used types of International Business Companies:
This is the most attractive and tax
beneficial structure used by International companies who invest in
Dividend income derived from subsidiaries and other investments, in
most cases, is tax exempt in
This type of companies is widely used taking advantage of the tax benefits arising from the profits from financial instrument trading. The advantages are:
Zero tax on profit arising from the trading in financial instruments,
including shares, bonds, repo deals and other listed or
International trading companies can use Cyprus for their activities within and outside the EU with the following benefits:
Low tax rate which is 12.5%, from 1st January 2013on business profits.
For the previous years the tax is at 10%
These companies can be used for:
Patents on new inventions as long as they are properly
The new tax benefits for the income derived from the above named intellectual property sources is summarised as follows:
The wear and tear expense of the costs of development and purchase is
20% on the capital amount.
As from 01 January 2010, Cyprus has become the only EU country with an EU approved Tonnage Tax (TT) system that basically:
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