Cyprus – is one of the most interesting countries for business. In Cyprus taxes are less than in other countries. And I will tell about it.
There are such taxes as:
- Income tax,
- Special tax contribution for defense purposes,
- VAT,
- Social contributions,
and others.
Income tax
The rate of Income tax is 12,5 %. Organizations don’t pay tax from:
- dividends,
- operations with securities,
- profit of the overseas branch of a Cypriot company,
- rent from buildings of historical value,
- profit from shipping activities.
Special tax contribution for defense purposes
Special tax contribution for defense purposes consists of three parts:
- Tax from dividends
- Tax interest income
- Capital gains tax
Capital gains tax
Organizations pay it from:
- income at sale local property
- trading shares that are not listed on the country's stock exchanges.
It has rate – 20 %.
VAT
Organizations pay it from:
- sale of goods and services;
- buying goods in the European Union;
- import of goods from non-EU countries.
It has 3 rates:
- standard – 19 %
- low – 9% and 5 %
- and null.
About Social contributions I will tell you next time.
Give me “Klass” for story about taxes.