Cyprus Corporate Tax Rate for 2021

Updated 06 July 2021


Cyprus Corporate Tax Rate is 12.5%. It is one of the lower tax rates for in the EU.

This tax is paid on the net income of your company after deduction of all costs that go to the production of your revenue. Losses of previous years can also be deducted from the company`s revenue before tax is payable. Apart from the corporate tax a Cyprus pays pretty much no other tax. No tax on dividends paid out or received, no tax on capital gains. There is also zero tax on profits from trading in securities such as shares. Tax on IP revenue is only 2.5%!  The Cyprus Corporate Tax Rate for 2021 is 12.5% and it is not likely to be increased yet.


How do I benefit the Low Cyprus Corporate Tax Rate?


If you want your trading, your operations, your business to benefit the low Cyprus Corporate Tax Rate all you have to do is to register a Cyprus company. A Cyprus company registration opens the doors to you to enjoy this fantastic benefit of being a perfectly legal EU company/business and enjoy the so privileged Cyprus Corporate Tax Rate. Our Firm has been registering Cyprus companies for international entrepreneurs since 1979. Hundreds of them are now enjoying this low corporate tax and saving millions in taxes. If you want concise information on the Cyprus Company Registration please follow this link.


Assessment of Corporate Tax Rate


A Cyprus company after its registration has to file audited account once a year. The latest at the end of December of the year following the tax year in question.  Your Accountants will submit all the revenues from your activities together with all the expenses, costs, fees, salaries etc. that were spent in order to produce the taxable income. The net sum of deducting the expenses from the income will be taxed at 12.5% corporate tax. Losses of previous years if any can also be deducted from the taxable income. If you want to read information about the Tax Rates generally in Cyprus regarding the other taxes go to Tax Rates in Cyprus.


When do I Have to Pay the Tax in 2021


The Cyprus Income Tax laws provide that a Cyprus company has to file in July a preliminary assessment of its yearly profits and pay a temporary tax on those profits in July. If this is not done a fine in the form of interest will be imposed on the sum that should have been paid and was not. The rest of the corporate tax has to be paid in December of the tax year in question, regardless of the fact that audited accounts of the company can be filed in December of the year following the tax year in question.


Where do I Pay the Tax?


The Cyprus Corporate Tax of your company is any is payable at the Income Tax Offices in cash or by cheque.  Your Accounts will normally undertake this duty for you.  An official receipt is issued by the Tax Office and you company`s file is updated. A Certificate of Taxes Paid is available for you if you need it at any time for use at a Bank, a Business deal or Government department of your country. A Tax Residency Certificate for your company can also be secured from the Tax Office for use as above.



Cyprus Corporate Tax Rate

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