Taxes in

Cyprus Cyprus ; tr, Kıbrıs (), officially the Republic of Cyprus,, , lit: Republic of Cyprus is an island country located south of the Anatolian Peninsula in the eastern Mediterranean Sea. Its continental position is disputed; while it is geo ...

are levied by both the central and local governments. Tax revenue stood at 39.2% of GDP in 2012. The most important revenue sources are the

income tax An income tax is a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them (commonly called taxable income). Income tax generally is computed as the product of a tax rate times the taxable income. Tax ...

social security Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specificall ...

, value-added tax and

corporate tax A corporate tax, also called corporation tax or company tax, is a direct tax imposed on the income or capital of corporations or analogous legal entities. Many countries impose such taxes at the national level, and a similar tax may be imposed at ...

, and are all collected by the central government. Income tax is levied on a progressive rate. Current brackets vary from 0% to 35% in the tax rates for 2014. Furthermore, various tax allowances apply for trade union fees, donation to charities. The tax brackets for the year 2014 are: Employment income is also subject to various social security contributions. Contributions are subject to a ceiling, for the year 2014 the maximum amount of insurable earnings has been set to €54396 per year. Employees pay 7.8% of their wage and employers contribute 11.5% of the corresponding wage. Value added tax applies to most sales of goods and services. The standard rate applies at 19% in 2014, up from 17% since 2013. A lower rate of 9% applies to groceries, books and hotel services. The Cyprus VAT is part of the European Union value added tax system. Certain goods and services are exempt from VAT. This includes exports, financial services, rent, etc. Corporate taxes are levied at a rate of 12.5%. Various deductions apply including interest, cost of buying other companies, and employer's cost to social security.

Anti Tax Avoidance Directive - Transposition to National Law

On the 19th of July 2019, the Cyprus Department of Taxation has issued a public consultation regarding the national transposition of (EU) 2016/1164 laying down rules against tax avoidance practices that directly affect the functioning of the internal market. In focus of the current consultation is the introduction of Hybrid Mismatch Rules in Cyprus as well as the introduction of an Exit Tax

References

Calculator An electronic calculator is typically a portable electronic device used to perform calculations, ranging from basic arithmetic to complex mathematics. The first solid-state electronic calculator was created in the early 1960s. Pocket-sized ...

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