Cyprus tax residents are taxed on all chargeable income accrued or derived from all sources in Cyprus and abroad. Non-tax residents are only taxed on their income accrued or derived from sources in Cyprus. An individual is tax resident in Cyprus if he spends in Cyprus more than 183 days in any one year.

Cyprus tax residents are taxed on all chargeable income accrued or derived from all sources in Cyprus and abroad. Non-tax residents are only taxed on their income accrued or derived from sources in Cyprus. Certain types of income are subject to SCD
(See article on the taxation of investment income https://shiakas.com/taxation-of-cyprus-investment-income/)

Corporate Income Tax (CIT)

All companies that are tax residents of Cyprus are taxed on their income accrued or derived from all sources in Cyprus and abroad.

The standard CIT rate in Cyprus is 12.5%.

Interest received by companies in the ordinary course of their business, including interest closely connected to the ordinary course of business, is also considered as ‘active’ interest income and is only taxed under CIT (after deducting allowable expenses) at the standard CIT rate of 12.5%.

In the midst of extensive tax reforms, the European Union, including Cyprus, is leading the way in a notable change in corporate taxation. The European Commission's enforcement of a minimum 15% tax rate for multinational companies earning over €750 million annually, starting from January 1, 2024, signifies a crucial moment. Nevertheless, Cyprus, along with a few other EU nations, is encountering a distinctive transitional phase due to delays in implementing the legislation. This article delves into the complexities of this transition, its legal structure, and the wider consequences for businesses operating in Cyprus.

It’s not a surprise that nowadays the rise of influencers has reshaped the landscape of traditional marketing  worldwide, including Cyprus. Influencers, utilise social media platforms – Instagram, Facebook, YouTube, TikTok – to become powerful faces for different brands. However, as the influencer industry continues to grow, so do the complexities surrounding its taxation, particularly Value Added Tax (VAT).