Corporate Tax Residency and Corporation Tax Rate

Imposition of tax

A company which is tax resident in the Republic, is taxed on income accruing or arising from sources both within and outside the Republic.

A company which is not tax resident in the Republic, is only taxed on income accruing or arising from sources within the Republic.

Tax residency

A company is tax resident in the Republic if:

  • it is managed and controlled from the Republic; or
  • it is incorporated or registered in the Republic but is managed and controlled from outside the Republic, as long as the company is not considered a tax resident of any other country (applies from 31 December 2022).

Tax rate

The headline corporate income tax rate is 12,5%.

Tax credit for foreign tax paid

Foreign tax paid on income subject to income tax in Cyprus may be credited against income tax payable on such income, irrespective of the existence of a tax treaty.

Disclaimer

Please note that the information provided here is for general guidance only and does not constitute professional tax advice. Tax laws and interpretations are subject to change, and individual circumstances can significantly affect tax obligations and benefits.

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For personalized tax advice tailored to your specific situation, we strongly recommend consulting with a qualified tax professional. Our team is equipped with the expertise to navigate the intricacies of Cyprus tax law and provide you with customized solutions. Contact us to ensure that you are making the most informed decisions for your tax-related matters.

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