Income Tax Credits in 1991
Generally
The tax profits introduced in the Republic of exports situ fabricated or manufactured products (excluding petroleum), taxed until 2002 with ½ rates
2 companies institutionalized after 07/10/1998 for the first time their shares on the Cyprus Stock Exchange (CSE), taxed for the four tax years following the year in which they are introduced in ASE K. with ½ of the rates, with a maximum saving 100 £ 000 tax per tax year, up to the year 2002.
Individuals
Income Tax by 2007
| % | Financial Year | Financial Year | Financial Year | Financial Year | Financial Year | Financial Year | Financial Year |
|---|---|---|---|---|---|---|---|
| 1991-1995 | 1996-1999 | 2000-2001 | 2002 | 2003 | 2004-2006 | 2007 | |
| 0% | 0-2000 | 0-5000 | 0-6000 | 0-9000 | 0-9000 | 0-10000 | 0-10750 |
| 20% | 2001-4000 | 5001-8000 | 6001-9000 | - | 9000-12000 | 10001-15000 | 10751-15750 |
| 25% | - | - | - | - | 12001-15000 | 15001-20000 | 15751-20600 |
| 30% | 4001-8000 | 8001-11000 | 9001-12000 | 9001-12000 | above 15001 | above 20001 | above 20600 |
| 40% | above 8001 | above 11001 | above 12001 | above 12001 |
Income tax from 2008
| Financial Year | Financial Year | |
|---|---|---|
| Euro | 2008-2010 | from 2011 |
| 0% | 0-19500 | 0-19500 |
| 20% | 19501-28000 | 19501-28000 |
| 25% | 28001-36300 | 28001-36300 |
| 30% | above 36301 | 36301-60000 |
| 35% | - | above 60001 |
Legal entities
Corporation tax until 2007
| Pounds | 1991-1995 | 1996-2002 | 2003-2004 | 2005-2007 |
|---|---|---|---|---|
| 0-40000 | 20% (1,2) | 20% (1,2) | 10% (3,4) | 10% (3,4,5) |
| 40000-100000 | 20% (1,2) | 25% (1,2) | 10% (3,4) | 10% (3,4,5) |
| 100001-1000000 | 25% (1,2) | 25% (1,2) | 10% (3,4) | 10% (3,4,5) |
| above 1000001 | 25% (1,2) | 25% (1,2) | 15% (5,6) | 10% (3,4,5) |
For the years 2008 to 2012, the companies pay tax at 10% (4).
For the years from 2013 companies pay tax at a rate of 12.5%.
Notes
1 For the tax years up to 2002 subject to an additional tax of 10% if the taxable income is reduced due to losses from previous years, deductions for investments and discounts for exhausting mine.
2 The international companies are taxed at a 4.25% rate.
In the year 2002 the public law taxed an additional tax of 10% on taxable income.
3. the international companies are taxed that chose the transitional provisions (7) are taxed at the rate of 4.25% instead of 10% for the years until 2005.
Four public bodies are taxed at 25% instead of 10% by the year 2008.
5. the international companies that have chosen the transitional provisions (7) are taxed at the rate of 4.25% instead of 15% for the years until 2005.
6. public bodies taxed at 35% instead of 15%
7. selection transitional provisions concerning international companies, which
They had income from sources outside the Republic during the fiscal year ending 31/12/2001 or expected to have such income which have not occurred until 31/12/2001 due to the nature of their work and
They still have income from sources exclusively outside the Republic. The choice is
irrevocable
applies for the years 2003-2005
Exemption of 50% interest
Exemption of dividends (except in the case where dividends among such companies)
Exemption for gains on disposal of securities
Offsetting losses between Group companies
Tax benefits from restructuring companies
Foreign tax credit (except in cases where there is avoidance of Double Taxation Convention)
Release of the permanent establishment abroad profits
The losses incurred during any tax year until the year 2000 will not be transferred and will not be offset against any income tax year after 5 years from the end of the tax year to which they relate.
Withholding tax
Withholding tax at source for the following sources of income:
1. natural persons resident salaries of the Republic under Regulation 6 on deduction of s salary 2003 Regulations.
2. persons who are not residents of the Republic for income from the following sources:
| Article N.118/(I)/2002 | Payment type | Tax-rate |
|---|---|---|
| 21 | The gross amount of any intellectual property royalty rights, compensation or other income derived from sources within the Republic by any person who is not resident in the Republic, which does not engage in any business in the Republic, as consideration for using, or for the privilege of using, any copyright, exploitation rights, plan, secret formula or process or trade mark type, method or other similar property or as consideration for technical assistance | 10 cents per £1 or 17 cent per €1,71 |
| 22 | The gross income for film projection in the Republic acquires any person who is not resident in the Republic | 5 cents per £1 or 9 cent per €1,71 |
| 23 | The gross income derived by an individual who is not resident in the Republic of the exercise in the Republic of any profession or vocation, the remuneration of persons who are not resident in the Republic, providing entertainment services on the gross receipts of any theatrical or musical group or other group of persons that provide public entertainers including football clubs and other athletic missions from abroad arising from representations in the Republic | 10 cents per £1 or 17 cent per €1,71 |