How the corporate tax is calculated?

Firstly, the company's income must be estimated. After that you must deduct all the expenses in order to find the taxable profit. There are no limitations according the expenses , as the company had to do them in order to keep its activities and work in a normal regime.

As expenses are consider the next: purchase of goods, salaries, director's fees, commition payments, business trip expenses, all the expenses for the employees, stationary, advertisement, rent etc. We would like to draw your attention that salaries for non residents are not taxable if they receive it through a Cyprus bank and live in Cyprus less than 183 days per year.

The tax is calculated:

4.25% on gross profit if the company was registered and had business activities before January the 1st 2002;

10% on gross profit for new companies.