If you are a resident or have a business presence in Cyprus and earn income above a certain threshold, you are required to register for tax with the tax authorities.
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If you are a resident or have a business presence in Cyprus and earn income above a certain threshold, you are required to register for tax with the tax authorities. According to the Cyprus Income Tax Law (ITA), the tax year runs from January 1st to December 31st. Anyone who is considered a tax resident in Cyprus is obligated to file their tax returns by the end of April of the following year. It’s important to note that tax residents are required to pay tax on their worldwide income, while non-residents are only required to pay tax on their income earned in Cyprus.
In Cyprus, income tax is applied on an individual’s total income and is levied on different sources of income such as employment, rental income, income from self-employment, dividends, interest income, and capital gains. Individuals are required to apply for a tax number (TIN) from the tax authorities before they can file their tax returns. The TIN is a unique identification number used for all tax-related activities.
When registering for tax in Cyprus, individuals are required to provide certain documents such as their passport, social security number, and details of their income and employment. Businesses, on the other hand, are required to provide details of their financial statements, tax identification numbers, business bank accounts, and other relevant information.
According to a report by the World Bank, Cyprus has a relatively simple and efficient tax system compared to other European countries. The report also states that Cyprus has the lowest corporate tax rate in the EU at 12.5%.
In the words of Benjamin Franklin, “In this world nothing can be said to be certain, except death and taxes.” As a well-functioning member of society, it is important to understand the tax obligations of living and doing business in Cyprus.
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Who should register? You must register for income tax if you are: A physical person whose gross annual income exceeds €19,500.A legal entity (e.g. a company) registered in the Republic of Cyprus.
A representative of the Cyprus tax office (we are not the tax office) should be contacting you via telephone or e-mail to provide your: TIC, and, ‘Unique Registration Number’. Both are necessary to register in TAXISnet.
All individuals should be registered online and submit their income tax returns electronically. In this respect, the deadlines for the electronic submission of income tax returns are as follows: For employees and pensioners: 31 July of the following year.
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Do I need to file a tax return in Cyprus?
Electronic submissions. All individuals should be registered online and submit their income tax returns electronically. In this respect, the deadlines for the electronic submission of income tax returns are as follows: For employees and pensioners: 31 July of the following year.
How do I register as a tax resident in Cyprus?
To become a tax residence in Cyprus you must spend at least 183 days during a tax year in Cyprus. The Cyprus tax year runs for the calendar year, from 1 January to 31 December. You must then register with the tax department to receive your tax ID number (TIC).
Who has to file a tax return in Cyprus?
The response is: Companies in Cyprus are required to prepare an Annual Return (HE32) that must contain information about registered office of the company, the shareholders, directors and secretary. The annual return must also provide information about the company’s liabilities and debentures.
What are the tax rules in Cyprus?
How much is income tax in Cyprus? Cyprus-tax residents pay general and foreign taxes on their income worldwide at tax rates ranging from 20-35%. Companies pay a corporate income tax of 12.5%. There is a special regime for retirees: 5% of the pension payments if they exceed €3,420 per month.
How do I get a tax number in Cyprus?
Response will be: Fill-in the form TD2001 [application for obtaining a tax number (TIC)] For Cypriot citizens: Copy of your Identification Card (ID). For EU citizens – resident in Cyprus: Copy of your ‘Registration Certificate’ from the Civil Registry and Migration Department (CRMD).
What documents do I need to register in Cyprus?
Response: For Non Cyprus residents: Copy of any other official certificate from you residence country, which clearly states your Tax Code / Identification Card (ID) / Social Insurance number, along with a letter that explains the reason of your request for registration to the Cyprus tax authorities.
Are intellectual property rights taxable in Cyprus?
The reply will be: There is a 2.5% tax on royalties received in connection with intellectual property rights held in Cyprus. Personal income in Cyprus is taxed on a tiered basis, with quite a substantial tax-free allowance of €19,500. The maximum income tax rate on personal income in Cyprus is presently set at 35% for income in excess of €60,000.
How do I Register in Taxisnet in Cyprus?
Answer will be: A representative of the Cyprus tax office (we are not the tax office) should be contacting you via telephone or e-mail to provide your: ‘UUnique Registration Number’. Both are necessary to register in TAXISnet. Need our help?
How do I get a tax number in Cyprus?
The response is: Fill-in the form TD2001 [application for obtaining a tax number (TIC)] For Cypriot citizens: Copy of your Identification Card (ID). For EU citizens – resident in Cyprus: Copy of your ‘Registration Certificate’ from the Civil Registry and Migration Department (CRMD).
Are intellectual property rights taxable in Cyprus?
There is a 2.5% tax on royalties received in connection with intellectual property rights held in Cyprus. Personal income in Cyprus is taxed on a tiered basis, with quite a substantial tax-free allowance of €19,500. The maximum income tax rate on personal income in Cyprus is presently set at 35% for income in excess of €60,000.
What documents do I need to register in Cyprus?
Answer to this: For Non Cyprus residents: Copy of any other official certificate from you residence country, which clearly states your Tax Code / Identification Card (ID) / Social Insurance number, along with a letter that explains the reason of your request for registration to the Cyprus tax authorities.
How to become a tax resident in South Cyprus?
Answer to this: All you need to do to become a tax resident in South Cyprus is to spend 60 days there while not being a tax resident in any other country and not spending more than 183 days in any other country. The term “resident but not domiciled”, also called Non-Dom Cyprus, was passed as law in July 2015.
