Companies are subject to corporation tax at the following rates:

                 Chargeable                        Tax
                 income                            rate
                   C£                              %
              Under 40.000                         20
              Over  40.001                         25
Companies are also subject to an additional tax at 10 % on their chargeable income before the deduction of:

  • losses brought forward
  • the additional deduction for the employment of unemployed graduates
  • the investment allowances

and after the deduction of the income subject to corporation tax at the above rates.

Offshore companies and branches of overseas companies registered in Cyprus and deriving their income from sources outside Cyprus are taxed at 4,25%. The profits of offshore partnerships and branches which are not managed and controlled from Cyprus are free of tax.

This information was correct in July 1997.

The contents of this article are intended to provide a general guide to the subject matter. Specialist advice should be obtained before any action is taken.