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About Cyprus |
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Cyprus Taxation
When Cyprus joined the European Union, in June 2003, agreed its Tax Directive. Cyprus VAT rate rose to 15% on many items. Tax year in Cyprus is from 1st of January till 31st of December.
Every person who leaves in Cyprus for more than 183 days in a calendar year, is required to pay tax on their income; on any income generated in Cyprus or from overseas. Married persons are taxed separately. People who are not residents of Cyprus are taxed in Cyprus on employment income.
Chargeable income is taxed as follows:
up to CYP£10,000 - tax is nil
from CYP10,001-15,000 - tax is 20%
from CYP15,001-20,000 - tax is 25%
above CYP20,000 - tax is 30%
Income taxation of companies depends on where they are managed and controlled, and for that reason companies registered in Cyprus but managed and controlled from another country, will only be taxed in Cyprus on their Cyprus-source income.
Cyprus has double taxation agreements with many countries and also UK.
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