Cyprus - Company tax
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* Information not yet provided by national authorities
The company tax rate for Cyprus is 12.5%.
Certain income types are also subject to a special contribution for defence.
When you set up your business entity, you should ensure that you do the following:
- Temporary tax is payable in two equal installments on the 31st July and 31st December of the current year, and Self-assessment tax (tax balance from the previous year) is payable on the 1st August (the following year).
- File your company tax return by your deadline. The Deadline for electronic filing is 31st March - 15 months after the end of the calendar year.
What profits do you pay company tax on?
Taxable profits include the profits your company or association makes from renting and/or doing business.
Additionally a company or association is subject to Capital Gains Tax based on the provisions of the relevant law for Profit from the disposal of:
- immovable property situated in Cyprus
- shares of companies whose property consists of, inter alia, immovable property situated in Cyprus
- shares of companies which either directly or indirectly participate in a company or companies which own immovable property situated in Cyprus and at least 50% of the market value of such shares is derived from the said property.
Note: Income from investments (dividends, interest and rent) is subject to a special contribution for defence, based on the provisions of the relevant Law.
If your company is based in Cyprus, it is liable to pay company tax on all its profits from Cyprus and abroad.
If your company isn't based in Cyprus but has an office or branch there, it only pays company tax on its profits from its activities in Cyprus.
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