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Basis of taxation

Corporation tax is imposed on every company which is a tax resident of Cyprus. A company is considered to be a tax resident of Cyprus whether incorporated in Cyprus or elsewhere, if it is managed and controlled in Cyprus.  Companies that are not tax resident in Cyprus are only taxed on certain Cyprus-sourced income, mainly from business activities carried out from a permanent establishment in Cyprus. 

Tax rates

The current tax rate for Companies is 10%.  

Basis Period

The year of assessment is the calendar year. That is the period covering the twelve months from 1st of January to 31st December. However, the Commissioner of Income tax may allow a company to have a different year end. In this case the chargeable income of the financial year should be apportioned on a calendar year basis.