Doing Business in Cyprus (UAE Edition)
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DOING BUSINESS C YPRUS<br />
75<br />
UNITED ARAB EMIRATES EDITION<br />
Taxation<br />
<strong>Cyprus</strong> offers one of the most attractive tax regimes<br />
<strong>in</strong> Europe. A member of the European Union s<strong>in</strong>ce<br />
2004, <strong>Cyprus</strong>’ regulatory regime is <strong>in</strong> full compliance<br />
with the requirements of the EU and OECD. <strong>Cyprus</strong> has<br />
one of the lowest EU corporate tax rates at 12.5%. The<br />
island’s advantageous tax rate coupled with an extensive<br />
list of double tax treaties places it high on the list of<br />
preferred jurisdictions for <strong>in</strong>ternational tax planners.<br />
CORPORATION TAX<br />
The Corporation Tax Rate <strong>in</strong> <strong>Cyprus</strong> is 12.5%.<br />
BASIS OF TAXATION<br />
All companies that are tax residents of <strong>Cyprus</strong> are taxed on their <strong>in</strong>come accrued or<br />
derived from all sources <strong>in</strong> <strong>Cyprus</strong> and abroad. A non-<strong>Cyprus</strong> tax resident company<br />
is taxed on <strong>in</strong>come accrued or derived from a bus<strong>in</strong>ess activity which is carried out<br />
through a permanent establishment <strong>in</strong> <strong>Cyprus</strong> and on certa<strong>in</strong> <strong>in</strong>come aris<strong>in</strong>g from<br />
sources <strong>in</strong> <strong>Cyprus</strong>. A company is considered tax resident of <strong>Cyprus</strong> if it is managed and<br />
controlled from <strong>Cyprus</strong>.<br />
Trilogy, Limassol
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