Cyprus Corporate Tax Rate

One of the Lowest Corporate Taxes in EU

Cyprus Corporate Tax Rate : One of the lowest taxes in the EU is the Cyprus Corporate Tax Rate. It is only 12.5%. Are you tired and disappointed of paying all those huge tax bills? The extra low Cyprus Corporate Tax Rate is the way out. Don`t hesitate. The Cyprus Corporate Tax Rate is so low it gives you the right to hope.

It gives you the opportunity to succeed. Our hundreds or international clients who have taken the opportunity. Low Cyprus Corporate Tax Rate and already enjoying very low tax bills. If you want to read some material and learn everything on Cyprus Company Registration just click the link.

Why Should I set up My Business in Cyprus?

Cyprus is the third biggest island in the Mediterranean Sea. It has a fast banking system, a strong human resources stock of University educated people. Coupled with advance telecommunications, air links to all countries and a friendly population. Many high schools and universities and a very low crime rate complete the picture.

It also has a very flexible tax system and the Cyprus Corporate Tax Rate is one of the lowest in the EU. So by setting up your company in Cyprus you will be enjoying the low Cyprus Cyprus Corporate Tax Rate.

Other Tax Benefits

Other benefits include Zero Tax on dividends paid out by the company. Plus Zero Tax on dividends paid to the company by companies in which it owns shares. Further is has Zero Tax on profits of trading in Shares including the shares of the Cyprus company.  A Cyprus I.B.C. pays Zero Capital Gains Tax, Zero Tax on profits from permanent establishment abroad and only 2.5% on IP rights or revenues! That is why you should choose Cyprus to set up your business.

Another useful service we offer to our clients to compliment the low tax rates is a Business Address in Cyprus.

How Is The Cyprus Corporate Tax Rate Assessed

The Tax Office at the end of each fiscal year examines the audited accounts your company will have filed through your Accountants. It examines the expenses and costs submitted by the Accountants.  It verifies that they all qualify as expenses going towards the generation of the taxable income. They deduct them from the taxable income which again is submitted by your Accountants.

They of course examine the taxable income calculations to verify that all taxable units have been included in the final taxable total. The result of this deduction is the net taxable income. On that sum they calculate a figure of 12.5%. The resultant amount is you corporate tax!.

In the deductible expenses salaries, rents, interests, logistics and purchase costs of the commodities are included.  Insurance costs, maintenance costs for offices or other buildings such as factories etc. can be included. Losses of previous years can be deducted from the current fiscal year`s profits.

For more reading on Cyprus Tax Rates just follow this link.

Cyprus Corporate Tax Payable in Two Installments

By a provision of the Cyprus Income Tax legislation the corporate tax of your company is payable in 2 installments. One in July of the current fiscal year and one in December. This is called the temporary tax.

If this is not paid, then interest and a fine are levied on the sum of the tax which is not paid. The tax is payable on the estimation of your Accountants for the taxable profits of the current fiscal year.

At the end of next year of the fiscal year in question audited accounts will be filed by your accountants. If the final corporate tax payable is larger than the temporary tax paid, the difference is paid then.

If you paid more tax than is finally calculated , a refund will be made to you. The Tax is payable at the offices of the Tax Office in the Town in which the Registered Office of your company is situated and in which town your company was registered at the Tax Office.

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