Tax Facts 2018 Tax - Deloitte
CyprusTax Facts2018Tax
Deloitte in Cyprus1Income Tax - Individuals2Income Tax - Companies8Profits from Intellectual Property16Special Contribution for Defence18Profits from Shipping Activities22Capital Gains Tax23Estate Duty & Immovable Property Tax26Maintenance of Accounting Books and Records27Tax Treaties - Withholding Tax Tables28Tax Calendar33Value Added Tax36Social Insurance and other Contributions42Transfer Fees for Immovable Property45Stamp Duty46Companies Registrar Rights and Fees47Notes49The Deloitte Tax Management Team52Deloitte Partners & Board Members53Our Offices & Your Contacts in Cyprus54
I would like to welcome you toDeloitte’s annual Cyprus tax facts.Cyprus tax facts has proven to bea useful tool for all businesses andindividuals wishing to have up to dateinformation on the tax environmentin Cyprus. The provision of taxationservices is one of our core servicelines with special emphasis onBusiness Tax, Personal Tax, IndirectTax (including VAT), Global EmployerServices (including solutions for HighNet Wealth Individuals) and Crossborder Tax.Christis M. Christoforou - CEOThe tax information contained in this guide is accurate as at its dateof publication (10 January 2018). The information included within isdesigned to increase the reader’s general awareness of the Cyprus TaxSystem and in no case should substitute seeking professional advice.For explanations, clarifications or professional advice please contactyour Deloitte advisors.
Deloitte in CyprusDeloitte is one of the largest providers of audit, tax, consultingand financial advisory services in Cyprus, operating out ofoffices in all major cities with more than 650 professionals.Our wide range of professional services includes: audit & assurance services tax & legal services consulting including human capital, strategy &operations, technology, EU advisory services investment & wealth advisory services risk advisory including strategic & reputation, regulation,financial, operational and cyber risks financial advisory including fund raising & debt advisory,business plans, feasibility studies, finance projections,mergers & acquisitions, transaction and valuationservices accounting services formation of companies and special services tointernational business companiesOur International FirmDeloitte Touche Tohmatsu Limited (DTTL) is one of thelargest private professional services organisations in theworld.Nearly 245.000 people in over 150 countries serve more than80% of the world’s largest companies, public institutions, aswell as fast-growing small and medium sized enterprises.1
Deloitte Cyprus Tax Facts 2018Income TaxIndividualsImposition of taxAn individual who is tax resident in the Republic of Cyprus (theRepublic), is taxed on income accruing or arising from sources bothwithin and outside the Republic.An individual who is not tax resident in the Republic, is taxed onincome accruing or arising only from sources within the Republic.Tax residencyAn individual who spends more than 183 days in the Republic is atax resident of the Republic.As from 1 January 2017 an individual can be a tax resident of theRepublic even if he/she spends less than or equal to 183 daysin the Republic provided that he/she satisfies all of the followingconditions within the same tax year (1 January – 31 December):i. does not spend more than 183 days in any other country;ii. is not a tax resident of any other country;iii. spends at least 60 days in the Republic;iv. maintains a permanent home in the Republic that is eitherowned or rented;v. carries on a business in the Republic, is employed in theRepublic or holds an office in a person who is a tax resident ofthe Republic at any time during the tax year.If the employment/business or holding of an office is terminatedduring the year, then the individual would cease to be considereda Cyprus tax resident of the Republic for that tax year.For the purpose of calculating the days of presence in the Republic: the day of arrival into the Republic is considered as a day in theRepublic the day of departure from the Republic is considered as a dayout of the Republic the arrival into the Republic and departure from the Republic onthe same day is considered as a day in the Republic and2
the departure from the Republic and return to the Republic onthe same day is considered as a day out of the Republic.Personal income tax ratesTaxableIncome 019.50128.00136.30160.001- 19.500- 28.000- 36.300- 60.000and overTaxRateTax% CumulativeTax nsThe following are exempt from income tax:Exemption Dividend incomeThe wholeamount Interest income, excluding interestincome arising in the ordinary courseof the business or closely connected with theordinary carrying on of the businessThe wholeamount Remuneration from anyemployment exercised in the Republicby an individual who was residentoutside the Republic beforethe commencement of the employment(note 1)20% of theremunerationor 8.550(whichever islower) Remuneration from anyemployment exercisedin the Republic by an individualwho was resident outsidethe Republic before the commencementof the employment, provided thatthe annual remunerationof the employee exceeds 100.000(note 2)50%of theremuneration Remuneration from the renderingof salaried services outside the Republicto a non-resident employer or toa permanent establishment outsidethe Republic of a resident employerfor a total period in the yearof assessment of more than 90 daysThe wholeamount3
Deloitte Cyprus Tax Facts 2018 Foreign exchange (FX) gains, withthe exception of FX gains arising fromtrading in foreign currencies andrelated derivatives (note 3)The wholeamount Gains arising from the disposal of Securities(note 4)The wholeamount Gains arising from aRestructuring (note 10)The wholeamount Profits of a permanent establishmentmaintained outside the Republic(subject to certain conditions)The wholeamount Rent from preserved building(subject to certain conditions)The wholeamount Lump sum received as retiring gratuity,commutation of pension, deathgratuity or as consolidatedcompensation for death or injuryThe wholeamount Lump sum repayment from lifeinsurance schemes or from approvedprovident fundsThe wholeamountDeductible expensesAll expenses incurred wholly and exclusively for the production ofincome are deductible in calculating taxable income, including: Interest relating to the acquisitionof fixed assets used in the business Expenses for letting of buildingsDeductionThe wholeamount20% of therental income Interest in respect of the acquisitionof a building for rental purposesThe wholeamount Subscriptions to trade unions orprofessional bodiesThe wholeamount4
Expenditure for the maintenance ofbuildings under preservation order(subject to certain conditions)Depends onthe size of thebuilding Donations to approved charitableorganisations (with receipts)The wholeamount Profits from the exploitationof intellectualproperty rights (page 16)Up to 80% Profits from the disposalof intellectualproperty rights (page 16)Up to thewhole amount Expenditure for scientific research Investment in an innovativesmall and medium sizedbusiness ( subject to conditions)The wholeamountUp to thewhole amount(Restricted to 50%of taxable income ascalculated before thisdeduction with a maximumdeduction of 150.000)Non-deductible expensesThe following expenses are not deductible in calculating taxableincome:Non-deductible Expenses not incurred whollyand exclusively for the productionof income Business entertainment expensesThe wholeamountamount inexcess of 1%of the grossincome or 17.086(whichever islower) Private motor vehicle expensesThe wholeamount Immovable property taxThe wholeamount5
Deloitte Cyprus Tax Facts 2018 Interest payable or deemed to bepayable in relation to the acquisitionof a private motor vehicle, irrespectiveof whether it is used in the businessor not, or other asset not usedin the business. This restriction is liftedafter 7 years from the date of purchaseof the relevant asset.The wholeamountInterest expense incurred for the acquisition of shares in awholly owned (direct or indirect) subsidiary will be deductiblefor income tax purposes provided that this subsidiary doesnot own (directly or indirectly) any assets which are not used inthe business. If this subsidiary does own (directly or indirectly)assets that are not used in the business, the interest expensethat corresponds to the percentage of assets not used in thebusiness will not be deductible. This applies to shares acquiredfrom 1 January 2012. Expenditure which is not supportedby appropriate supportingdocumentation as requiredby the relevant RegulationsThe wholeamount Wages and salaries relating to servicesoffered within the tax year on whichsocial insurance and other contributions,have not been paid in the year inwhich they were dueThe wholeamountIn case the above contributions (including any penalties andinterest) are paid within 2 years following the due date, suchwages and salaries will be tax deductible in the tax year in whichthey are paid.Loans or other financial assistance provided to companydirectors or individual shareholdersAny amount provided by the company as a loan or financialassistance to a director, or to an individual shareholder, or to his/her spouse, or to any relative up to a second degree is consideredas a monthly benefit equal to 9% p.a. calculated on the amountreceived. Such benefit, is included in the individual’s taxableincome subject to income tax.The amount of tax on the monthly benefit should be withheld fromthe individual’s monthly salary and paid to the Tax Department ona monthly basis under the PAYE system.6
Annual wear and tear allowancesAnnual wear and tear allowances available for companies (pages14 and 15) are also available to individuals.LossesLosses carried forwardIndividuals who have an obligation to prepare audited financialstatements (i.e. those with turnover in excess of 70.000) maycarry forward tax losses incurred during a tax year over the nextfive years, to be offset against taxable income.Where a person, including a partnership, converts his/her businessinto a limited liability company, any unutilised tax losses can betransferred to the new company.Losses of a permanent establishment outside the RepublicTax losses arising from a permanent establishment maintainedoutside the Republic can be offset against taxable profits of thecompany arising in the Republic in the same year. However, anysubsequent taxable profits from such a permanent establishmentare taxable up to the amount of tax losses previously offset.Personal Tax AllowancesThe following are deductible from income:Social insurance contributions,contributions to approved providentand pension funds and the General HealthPlan, contributions to medical or otherapproved funds as well as life insurancepremiums in respect of the life of theclaimant (note 11)Allowancelimited to1/6 of thetaxableincomebefore thisallowanceTax credit for foreign tax paidAny foreign tax paid on income subject to income tax in Cyprus iscredited against any Cyprus income tax payable on such income,irrespective of the existence of a tax treaty.7
Deloitte Cyprus Tax Facts 2018Income TaxCompaniesA company which is tax resident in the Republic, is taxed onincome accruing or arising from sources both within and outsidethe Republic.A company which is not tax resident in the Republic, is taxed onincome accruing or arising only from sources within the Republic.Tax residencyA company is tax resident in the Republic if it is managed andcontrolled from the Republic.Tax rateCorporate income tax12,5%ExemptionsThe following are exempt from corporate income tax:Exemption Dividend income(note 5)The wholeamount Interest income, excluding interestincome arising in the ordinary course ofthe business or closely connected with theordinary carrying on of the businessThe wholeamount Foreign Exchange (FX) gains withthe exception of FX gains arising fromtrading in foreign currencies andrelated derivatives (note 3)The wholeamount Gains arising from the disposal of Securities(note 4)The wholeamount Gains arising from aRestructuring (note 10)The wholeamount Profits from a permanent establishmentmaintained outside the Republic(subject to certain conditions)The wholeamount Rent from preserved building(subject to certain conditions)The wholeamount8
Deductible expensesAll expenses incurred wholly and exclusively for the production ofincome are deductible in calculating taxable income, including:Deduction Interest incurred for the acquisitionof a fixed asset used in the business Notional interest deduction (NID)on new equity(note 6) Expenditure for the maintenance ofbuildings under preservation order(subject to certain conditions)The wholeamountUp to 80%of the taxableprofit derived fromassets financed bythe new equityDepends onthe size ofthe building Donations to approved charitableorganisations (with receipts)The wholeamount Profits from the exploitationof intellectualproperty rights (page 16)Up to 80% Profits from the disposalof intellectualproperty rights (page 16)Up to thewhole amount Employer’s contributions toapproved funds on employees’ salariesThe wholeamount Expenditure for scientific research includingresearch and development undertakenby an innovative businessThe wholeamountNon-deductible expensesThe following expenses are not deductible in calculating taxableincome:Non-deductible Expenses not incurred whollyThe wholeand exclusively for the productionamountof income Business entertainment expensesamounts inexcess of 1%of the grossincome or 17.086(whichever islower)9
Deloitte Cyprus Tax Facts 2018 Private motor vehicle expensesThe wholeamount Interest payable or deemed to be payablein relation to the acquisition of a privatemotor vehicle, irrespective of whetherit is used in the business or not, or otherasset not used in the business. Thisrestriction is lifted after 7 years from thedate of acquisition of the relevant assetThe wholeamountInterest expense incurred for the acquisition of shares in awholly owned (direct or indirect) subsidiary will be deductiblefor income tax purposes provided that this subsidiary doesnot own (directly or indirectly) any assets which are not used inthe business. If this subsidiary does own (directly or indirectly)assets that are not used in the business, the interest expensethat corresponds to the percentage of assets not used in thebusiness will not be deductible. This applies to shares acquiredfrom 1 January 2012. Expenditure which is not supported byappropriate supporting documentation asrequired by the relevant RegulationsThe wholeamount Wages and salaries relating to servicesoffered within the tax year on whichsocial insurance and other contributionshave not been paid in the year in whichthey were due will not be tax deductiblefor the calculation of taxable incomeThe wholeamountIn case the above contributions (including any penalties andinterest) are paid within two years following the due date, suchwages and salaries will be tax deductible in the tax year in whichthey are paid.LossesLosses carried forwardCompanies may carry forward tax losses incurred during a tax yearover the next five years to be offset against taxable income.Group reliefCurrent year tax losses may be surrendered by one Cyprus taxresident group company to another. A group company which is taxresident in another EU country may also surrender current year taxlosses to a Cyprus tax resident company, provided such company10
firstly exhausts all possibilities available to utilise its tax losses inits country of residence or in the country of any intermediary EUholding company.Group relief is available if both companies are members of thesame group for the entire tax year.Two companies are considered to be part of a group for grouprelief purposes if: one is a 75% subsidiary of the other, or both are 75% subsidiaries of a third companyThe interposition of a non-Cyprus tax resident company doesnot affect the eligibility for group relief as long as such companyis tax resident in either an EU country or in a country with whichCyprus has either a tax treaty or an exchange of information treaty(bilateral or multilateral).Where a company has been incorporated by its parent companyduring the tax year, this company will be deemed to be a memberof this group for group relief purposes for that tax year.Losses of a permanent establishment outside the RepublicTax losses arising from a permanent establishment outside theRepublic may be offset against taxable profits of the companyarising in the Republic in the same year. However, any subsequenttaxable profits from such a permanent establishment are taxable,up to the amount of tax losses previously offset.Tax credit for foreign tax paidAny foreign tax paid on income subject to income tax in Cyprus iscredited against any Cyprus income tax payable on such income,irrespective of the existence of a tax treaty.11
Deloitte Cyprus Tax Facts 2018Special Modes of ΤaxationInsurance companiesInsurance companies are generally taxable in the same wayas all other companies. In the case where there is no taxpayable or where the tax payable on the taxable incomeof the life business is less than 1,5% of the gross insurancepremiums, then the insurance company pays the differenceas additional tax.Pension income from services rendered abroadThe pension income of any individual resident in theRepublic, which arises from services rendered abroad, istaxed at a rate of 5% for amounts exceeding 3.420 perannum.The taxpayer has the right to choose to be taxed eitherunder the special mode of taxation as stated above or underthe personal income tax rates (page 2). If the latter is chosenthe pension is added to the individual’s aggregate taxableincome.Widow’s pensionThe total amount of widow’s pension received from theSocial Insurance Fund and/or other approved pensionfunds is taxed at the flat rate of 20% on amounts exceeding 19.500. The taxpayer can however elect to be taxed inaccordance with the personal income tax rates (page 2).Intellectual property rights etc.The gross income arising from intellectual property rights,other exploitation rights, compensations or other similarincome arising from sources within the Republic, of a personwho is not resident in the Republic and does not arise froma permanent establishment in the Republic, is subject towithholding tax at a rate of 10% (unless a tax treaty providesfor a lower tax rate).Royalties received by a connected company registered in aEuropean Union Member State are exempt from withholdingtax (subject to conditions).Rights granted for use outside the Republic are not subjectto any withholding tax.Film royalties etc.The gross income derived by a non-resident person inrespect of royalties arising from film projection in the12
Republic is subject to withholding tax at a rate of 5% (unlessa tax treaty provides for a lower tax rate).Royalties received by a connected company registered in aEuropean Union Member State are exempt from withholdingtax (subject to conditions).Profits of professionals, entertainers etc.The gross income derived by an individual not resident in theRepublic from the exercise in the Republic of any professionor vocation, the remuneration of public entertainers notresident in the Republic, and the gross receipts of anytheatrical or musical or other group of public entertainers,including football clubs and other athletic missions fromabroad, derived from performances in the Republic issubject to a 10% withholding tax (unless a tax treaty providesfor a lower tax rate).Income from Oil & Gas related activitiesThe gross amount or other income derived from sourceswithin the Republic by any person who is not residentin the Republic, which does not arise from a permanentestablishment i
Maintenance of Accounting Books and Records 27 Tax Treaties - Withholding Tax Tables 28 Tax Calendar 33 . (10 January 2018). The information included within is . the day of arrival
The following Fact Fluency Card labels are included in this pack: 1. Plus One Facts 2. Plus Two Facts 3. Plus Three Facts 4. Minus One Facts 5. Minus Two Facts 6. Minus Three Facts 7. Facts of Five 8. Doubles Facts (Addition) 9. Doubles Facts (Subtraction) 10. Near Doubles Facts (e.g. 6 7 6 6 1 12 1 13) 11. Facts of Ten: Addition 12.
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doubles-plus-one facts, doubles-plus-two facts, plus-ten facts, plus-nine facts, and then any remaining facts. For multiplication, the suggested sequence is the times-zero principle, times-one principle, times-two and two-times facts, times-five and five-times facts, times-nine and nine-times facts, perfect squares, and then any remaining facts .
Math Bee Practice . 1st Round Mixed Multiplication and Division Facts 2 seconds. Multiplication Facts 6 x 6 _ Multiplication Facts 6 x 6 36. Multiplication Facts 32 8 _ Multiplication Facts 32 8 4. Multiplication Facts 7 x 6 _ Multiplication Facts 7 x 6 42. Multiplication Facts 56 7 _
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