Latest Tax News

Keep up to date with all the latest tax news

×

Warning

JUser: :_load: Unable to load user with ID: 650

Other Company Taxes

Other Company TaxesThe following is a summary of the different types of taxes payable by corporations. If you need any further....

The following is a summary of the different types of taxes payable by corporations. If you need any further information, please get in touch with our tax department.

Other taxes on corporations

Capital duty:

  • Capital duty is payable on authorised share capital and the issuance of shares at a rate of 0.6%.

Payroll tax:

  • Employers are required to withhold personal tax on salaries of employees under the PAYE system.

Real property tax:

  • Tax is imposed annually on the market value of immovable property. Rates range from 0% to 0.019%.

Capital gains tax:

  • Capital gains tax of 20% is imposed on gains from the disposal of immovable property situated in Cyprus and gains from the disposal of shares in an unlisted company that owns immovable property situated in Cyprus.

Social security:

  • Employers must make social insurance contributions amounting to 7,8% of gross salary. The maximum amount of annual earnings on which the contributions are payable as from 1.1.2014 is 54,396 euro. Additionally employers are required to make a contribution of 2% to the social cohesion fund on all earnings of employees.

Stamp duty:

  • Stamp duty is payable of a document if it relates to property situated in Cyprus or to an act to be performed or done in Cyprus. Stamp duty on commercial contracts are charged at rates that vary according to the contract amount. A ceiling of 17,036 euro per document applies.

Transfer tax:

  • Transfer of immovable property are subject to fees ranging from 3% to 8% calculated on the market value of the property as estimated by the land registry department.

Anti-avoidance rules

  • Transfer pricing:The arm’s length principle requires that the transaction between related parties be carried out at market value and on normal commercial grounds.

Thin capitalisation:

  • NO

Controlled foreign companies:

  • NO

Other:

  • Under general anti-avoidance provision, any artificial or fictitious transaction may be disregarded and the commissioner of income tax may assess tax on the person concerned.

Disclosure requirements:

  • NO