Foreign Exchange Control: Temporary measures from 2013.
Accounting Principles: IFRS. Accounts audited and filed annually.
Business Entities: Principally, public and private limited liability companies.
Residence: If management and control exercised locally.
Basis: Resident companies subject to tax on worldwide income; non-resident companies only subject to tax on Cyprus-sourced income.
Rate: 12.5% with certain types of income subject to Special Contribution for Defence (SCD) at other rates.
Foreign Tax: Unilateral tax credit granted for tax paid abroad.
Other: Preferential treatment possible for interest, royalties and I.P.
Tax Year: Calendar Year. Electronic filing of return mandatory by 31 March following end of the tax year.
Residence: Resident individual subject to tax on worldwide income; non-resident individual only taxed on Cyprus-sourced income (Resident if >183 days in a tax year).
Rate: First €19,500 tax free, with progressive rates above this level up to 35%.
Capital Gains: Gains on sale of shares exempt; 20% on immovable property, and shares in unlisted companies which own Cyprus-based immovable property.
Other: Stamp duty varying rates up to €20,000.
Real property tax: Annual charge of 0.6% to 1.9% based on 1st January 1980 market value.
Inheritance Tax: None
Social Security: 6.8% Employees, 12.6% Employers generally.
VAT: Rate is 19%, with registration threshold of €15,600.
Member Firm: KPSA