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%.