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Tax Information - 2015

Individuals who are not tax residents of Cyprus are taxed on certain income accrued or derived from sources in Cyprus.
All Cyprus tax residents are taxed on all chargeable income accrued or derived from all sources in Cyprus and abroad.
A person is regarded to tax resident in Cyprus if he/she spends in Cyprus more than 183 days in any calendar year.
 

Taxable Income €
%
Tax €
Cumulative Income €
Cumulative
0-19.500
0
-
19.500
-
19.501-28.000
20
1.700
28.000
1.700
28.001-36.300
25
2.075
36.300
3.775
36.301-60.000
30
7.110
60.000
10.885
Over 60.000
35
-
-
-

Personal Allowances
 
  • Interest Income
100%
  • Dividend income
100%
  • Profits from sale of shares
100%
  • Widow pensions & Retirement lump sum
100%
  • Amounts deposited under an approved scheme of the Housing Finance Corporation (with restrictions)
40%
  • Rental income from a preserved building (with conditions)
100%
  • Overseas pensions (tax rate of 5 % for over € 3.418)
€3.418 Maximum
  • Emoluments from the provision of services to a permanent establishment abroad for a total period of at least 90 days in aggregate
100%
  • Emoluments of an individual in Cyprus in the case that prior to the employment in Cyprus he/she was a non-Cyprus resident (valid for 3 years starting the 1st of January following the year of his/hers employment)
The lower of 20% of the emoluments and €8.543 annually
  • Profits from a permanent establishment overseas
100%
  • Persons who are not resident and non-tax resident in Cyprus and now have income more than €100.000 from employment in Cyprus
50% of Income from employment in Cyprus for the first 5 years

Deductions for Individuals
 

1
Social insurance deductions, pensions, contributions of a general medical funds, annual life assurances (up to 7% of the insurable amount), provident funds (with restrictions)
Restricted to 1/6 of the taxable income.
2
Donations & subscriptions (with receipts) to approved charitable foundations
100%
3
Subscriptions to trade unions and professional associations
100%
4
Tax losses of current and prior years in the case where audited financial statements are prepared
100%
5
Rental income of immovable property.
20% on gross rental income, wear & tear allowances and loan interest.
6
Expenditure incurred for the maintenance of a building in respect of which there is in force a Preservation Order (with conditions)
Up to €1.200, €1.100 or €700 per square meter (depending on the building area).
 
 
Special Tax Contribution
 
A special tax contribution is charged on gross salaries of employees, on the income of self-employed
and on the income of pensioners of private companies as below.
 
Monthly
Income/salary
Total
Contribution
Employer's
contribution
Employee's
contribution
€0 - €1.500
0%
0%
0%
€1.501 - €2.500
2.5% (< € 10)
1.25%
1.25%
€2.501 - €3.500
3.0%
1.50%
1.50%
More than €3.501
3.5%
1.75%
1.75%

The above rates are applicable to gross income without restrictions to the level of contribution.
In respect to employees or pensioners the special tax contribution is deducted from the monthly salary (PAYE) or pension and is payable to the income tax office.
In the case of self-employed the special tax contribution is payable with temporary tax return (ie 31st July and 31st Dec.)
The law is valid as from 1st Jan. 2012

 
Personal Income Tax Declarations - IR1

Employees
Individuals with gross income of more than €19.500 annually must submit electronically their personal income tax return to the office of the Inland Revenue until the end of July of the following year.

Self-Employed
Individuals with no obligation to maintain proper books and records and prepare audited financial statements must submit their personal income tax return to the office of the Inland Revenue until 30th September of the following year.

Individuals with an obligation to maintain proper books and records and prepare audited financial statements must submit their personal income tax return to the office of the Inland Revenue until 31st of December of the following year.

All Tax Declarations must be submitted electronically with TAXINET system.
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