Additional Information Regarding the Taxation of Companies in Cyprus
Posted: Wed Feb 19, 2025 10:00 am
Since January 1, 2020 the NID rate has been defined as; the interest rate of the 10 year government bond yield of the country in which the new equity is invested, as published annually, plus a 5% premium. The interest rate of the Cyprus 10 year government bond will no longer be used as a general minimum rate. It is only deemed to be relevant, when the country in which the new equity is invested has not issued any government bonds, as of 31 December the year preceding the tax year the NID is claimed.
The following sources of income are exempt from corporate income tax:
Dividend income
Interest income, excluding income arising in the ordinary course of business, which is lebanon mobile database subject to corporation tax
Foreign exchange gains (FX), with the exception of FX gains arising from trading in foreign currencies and related derivatives
Gains arising from the disposal of securities.
Deductible Expenses
All expenses incurred wholly and exclusively in the production of income are deductible when calculating taxable income.
The following sources of income are exempt from corporate income tax:
Dividend income
Interest income, excluding income arising in the ordinary course of business, which is lebanon mobile database subject to corporation tax
Foreign exchange gains (FX), with the exception of FX gains arising from trading in foreign currencies and related derivatives
Gains arising from the disposal of securities.
Deductible Expenses
All expenses incurred wholly and exclusively in the production of income are deductible when calculating taxable income.