Tax Rates for Income Tax

Tax Rates for Income Tax from 1991

General
1. The taxable earnings where imported into the Republic from the export of locally made or produced products (excluding petroleum product), are taxable up to the 2002 at ? rates.
2. Companies which introduced shares into the Cyprus Stock Exchange for the first time, after 10/7/1998, are taxable for the 4 tax years that followed the year in which their shares were introduced, with ? rates, with a maximum benefit of ?100 000, until the year 2002.

Individuals
Tax years from 1991 - 2007

%	Tax Years
%	1991 - 1995 CYP	1996 - 1999 CYP	2000 - 2001 CYP	2002 CYP	2003 CYP	2004 - 2006 CYP	2007 CYP
0%	0 - 2 000	0 - 5 000	0 - 6 000	0 - 9 000	0 - 9 000	0 - 10 000	0 - 10 750
20%	2 001 - 4 000	5 001 - 8 000	6 001 - 9 000	-	9 000 - 12 000	10 001 - 15 000	10 751 - 15 750
25%	-	-	-	-	12 001 - 15 000	15 001 - 20 000	15 751 - 20 600
30%	4 001 - 8 000	8 001 - 11 000	9 001 - 12 000	9 001 - 12 000	15 001 and over	20 001 and over	20 600 and over
40%	8 001 and over	11 001 and over	12 001 and over	12 001 and over

Tax years form 2008

	Tax Year
EUR	2008
0%	0 - 19 500
20%	19 501 - 28 000
25%	28 001 - 36 300
30%	36 301 and over

Legal Persons

Corporation Tax

CYP	1991 -1995	1996 - 2002	2003 - 2004	2005 - 2007
0 - 40 000	20%(1,2)	20%(1,2)	10%(3,4)	10%(3,4,5)
40 000 - 100 000		25%(1,2)
100 001 - 1000 000	25%(1,2)
1 000 001 and over			15%(5,6)

From 2008 companies pay tax on all their income at the rate of 10% (3,4,5)

Notes
1 For tax years up to 2002 an additional tax of 10% is imposed when the taxable income is reduced due to losses of prior years, deductions for investments and deductions for the depletion of a mine are given.
2 International activity companies are taxed at the rate of 4,25%. During the year 2002 an additional tax of 10% on taxable income is imposed on public corporate bodies.
3 International activity companies that elected for transitional tax 7 rules are assessed at 4,25% instead of 10% for years to 2005.
4 Public corporate bodes are assessed at a rate of 25% instead of 10%
5 International activity companies that elected for transitional tax 8 rules ate assessed at 4,25% instead of 15% for the years to 2005.
6 Public corporate bodes are assessed at a rate of 35% instead of 15%
7 The option for the transitional provisions relates to international activity companies that:

Had income from sources outside the Republic during the tax year ending 31/12/2001 or are expected to have such income that has not arisen, due to the nature of its activities, up to 31/12/2001 and
Continue to have income exclusively from sources outside the Republic. The option is
- irrevocable
- applies to tax years 2003-2005
- Companies that make this option are not allowed to claim
  - the exemption of 50% of interest income
  - The exemption of dividend income (except in the case where the dividend is between companies which have the same status i.e. they have both elected for the option)
  - the exemption for profits on the sale of titles
  - Group relief of losses
  - Tax benefits from re-organisations
  - Credits for foreign tax (except where there is a Double taxation Treaty in force.)
  - Exemption for the profits of a permanent establishment overseas
- losses that arose during any year up to and including the year 2000 will not transferred and offset with income of any tax year after the passing of 5 years from the end of the tax year in which they occurred.