A Cyprus tax resident individual is any person who is physically present in Cyprus for more than 183 days in a calendar year and is taxed on income accruing or arising from sources both within and outside the Republic.
Tax-residency
A calendar year is the same as a tax year. It does not matter the purpose of being in Cyprus, nor is it a condition that a Cyprus tax resident person owns or rents accommodation in Cyprus. It is literally based on the number of days without any further conditions.
As of 1st January 2017, an individual will also be considered a Cyprus tax resident if he/she:
It is noted that, if the employment/business or holding of an office as per (b) above is terminated, then the individual would cease to be considered a Cyprus tax resident for that tax year under the 60 days tax residency scheme.
For calculating and meeting both the “183 days rule” and the “60 days rule”, the below are considered:
Tax residents
Tax residents are taxed on income accruing or arising from sources both within and outside the Republic. Such income can derive from:
Non-Tax residents
Benefits in Kind
The taxation of benefits is provided in Article 5 of the Income Tax Law, according to which benefits from any office or employment, provided to an employee or to a member of his family either in cash or otherwise, are subject to tax.
Benefit in kind means the benefit that is, or is deemed to be, granted in connection with any employment or the holding of an office.
The rules apply with reference to benefits in kind provided to:
When the benefit is granted to a member of the family or household of the person who is employed or holds the office, then the benefit shall be deemed to be provided to that person.
Employers are required to keep records indicating how the value of the benefits in kind has been determined and such records should be available for inspection when requested by the Tax Department.
Since benefits in kind are taxed in the same way as salaries, the employer who will bear the cost of providing them will be able to deduct such cost from his taxable income under the same conditions that it would be deducted had it been a salary payment.
Any person providing "benefits in kind" to an employee and any company or corporation providing benefits to its officers, even in cases where it does not have employees, is considered as an employer by the Tax Department and should register on the Employers' Register and receive a T.I.C, which will enable the submission of the Employer's Return (T.D. 7).
The value of benefits in kind is taxed in the same way as the gross earnings, through the submission of the Form T.D. 7. Employers are required to declare the benefits in kind provided by them or by their connected companies.
Categories of Benefits in Kind
Exemptions
As a general principle, exemptions apply only to the extent where the payment or reimbursement to the employee is made against actual costs supported by payment receipts. They don't apply where the relevant benefit in kind takes the form of cash.
Other specific exemptions mentioned in the guide include amongst others:
The following types of income are exempted from income tax:
All expenses incurred wholly and exclusively for the purposes of generating taxableincome and which are supported by proper and reliable documentation, can be considered as tax deductible. These can include the following:
The following expenses cannot be deducted from the income in the computation of taxable income:
Personal tax allowances
Tax credit for foreign tax paid
Any foreign tax paid can be credited against any Cyprus income tax payable on the same income.
Losses
Individuals who have an obligation to prepare audited financial statements may carry forward tax losses incurred during a tax year over the next five years, to be offset against taxable income. Where person, including a partnership, converts a business into a limited liability company, any unutilised tax losses can be transferred to the new company.
A Cyprus tax resident individual is any person who is physically present in Cyprus for more than 183 days in a calendar year and is taxed on income accruing or arising from sources both within and outside the Republic.
Tax-residency
A calendar year is the same as a tax year. It does not matter the purpose of being in Cyprus, nor is it a condition that a Cyprus tax resident person owns or rents accommodation in Cyprus. It is literally based on the number of days without any further conditions.
As of 1st January 2017, an individual will also be considered a Cyprus tax resident if he/she:
It is noted that, if the employment/business or holding of an office as per (b) above is terminated, then the individual would cease to be considered a Cyprus tax resident for that tax year under the 60 days tax residency scheme.
For calculating and meeting both the “183 days rule” and the “60 days rule”, the below are considered:
Tax residents
Tax residents are taxed on income accruing or arising from sources both within and outside the Republic. Such income can derive from:
Non-Tax residents
Benefits in Kind
The taxation of benefits is provided in Article 5 of the Income Tax Law, according to which benefits from any office or employment, provided to an employee or to a member of his family either in cash or otherwise, are subject to tax.
Benefit in kind means the benefit that is, or is deemed to be, granted in connection with any employment or the holding of an office.
The rules apply with reference to benefits in kind provided to:
When the benefit is granted to a member of the family or household of the person who is employed or holds the office, then the benefit shall be deemed to be provided to that person.
Employers are required to keep records indicating how the value of the benefits in kind has been determined and such records should be available for inspection when requested by the Tax Department.
Since benefits in kind are taxed in the same way as salaries, the employer who will bear the cost of providing them will be able to deduct such cost from his taxable income under the same conditions that it would be deducted had it been a salary payment.
Any person providing "benefits in kind" to an employee and any company or corporation providing benefits to its officers, even in cases where it does not have employees, is considered as an employer by the Tax Department and should register on the Employers' Register and receive a T.I.C, which will enable the submission of the Employer's Return (T.D. 7).
The value of benefits in kind is taxed in the same way as the gross earnings, through the submission of the Form T.D. 7. Employers are required to declare the benefits in kind provided by them or by their connected companies.
Categories of Benefits in Kind
Exemptions
As a general principle, exemptions apply only to the extent where the payment or reimbursement to the employee is made against actual costs supported by payment receipts. They don't apply where the relevant benefit in kind takes the form of cash.
Other specific exemptions mentioned in the guide include amongst others:
The following types of income are exempted from income tax:
All expenses incurred wholly and exclusively for the purposes of generating taxableincome and which are supported by proper and reliable documentation, can be considered as tax deductible. These can include the following:
The following expenses cannot be deducted from the income in the computation of taxable income:
Personal tax allowances
Tax credit for foreign tax paid
Any foreign tax paid can be credited against any Cyprus income tax payable on the same income.
Losses
Individuals who have an obligation to prepare audited financial statements may carry forward tax losses incurred during a tax year over the next five years, to be offset against taxable income. Where person, including a partnership, converts a business into a limited liability company, any unutilised tax losses can be transferred to the new company.
A Cyprus tax resident individual is any person who is physically present in Cyprus for more than 183 days in a calendar year and is taxed on income accruing or arising from sources both within and outside the Republic.
Tax-residency
A calendar year is the same as a tax year. It does not matter the purpose of being in Cyprus, nor is it a condition that a Cyprus tax resident person owns or rents accommodation in Cyprus. It is literally based on the number of days without any further conditions.
As of 1st January 2017, an individual will also be considered a Cyprus tax resident if he/she:
It is noted that, if the employment/business or holding of an office as per (b) above is terminated, then the individual would cease to be considered a Cyprus tax resident for that tax year under the 60 days tax residency scheme.
For calculating and meeting both the “183 days rule” and the “60 days rule”, the below are considered:
Tax residents
Tax residents are taxed on income accruing or arising from sources both within and outside the Republic. Such income can derive from:
Non-Tax residents
Benefits in Kind
The taxation of benefits is provided in Article 5 of the Income Tax Law, according to which benefits from any office or employment, provided to an employee or to a member of his family either in cash or otherwise, are subject to tax.
Benefit in kind means the benefit that is, or is deemed to be, granted in connection with any employment or the holding of an office.
The rules apply with reference to benefits in kind provided to:
When the benefit is granted to a member of the family or household of the person who is employed or holds the office, then the benefit shall be deemed to be provided to that person.
Employers are required to keep records indicating how the value of the benefits in kind has been determined and such records should be available for inspection when requested by the Tax Department.
Since benefits in kind are taxed in the same way as salaries, the employer who will bear the cost of providing them will be able to deduct such cost from his taxable income under the same conditions that it would be deducted had it been a salary payment.
Any person providing "benefits in kind" to an employee and any company or corporation providing benefits to its officers, even in cases where it does not have employees, is considered as an employer by the Tax Department and should register on the Employers' Register and receive a T.I.C, which will enable the submission of the Employer's Return (T.D. 7).
The value of benefits in kind is taxed in the same way as the gross earnings, through the submission of the Form T.D. 7. Employers are required to declare the benefits in kind provided by them or by their connected companies.
Categories of Benefits in Kind
Exemptions
As a general principle, exemptions apply only to the extent where the payment or reimbursement to the employee is made against actual costs supported by payment receipts. They don't apply where the relevant benefit in kind takes the form of cash.
Other specific exemptions mentioned in the guide include amongst others:
The following types of income are exempted from income tax:
All expenses incurred wholly and exclusively for the purposes of generating taxableincome and which are supported by proper and reliable documentation, can be considered as tax deductible. These can include the following:
The following expenses cannot be deducted from the income in the computation of taxable income:
Personal tax allowances
Tax credit for foreign tax paid
Any foreign tax paid can be credited against any Cyprus income tax payable on the same income.
Losses
Individuals who have an obligation to prepare audited financial statements may carry forward tax losses incurred during a tax year over the next five years, to be offset against taxable income. Where person, including a partnership, converts a business into a limited liability company, any unutilised tax losses can be transferred to the new company.
A Cyprus tax resident individual is any person who is physically present in Cyprus for more than 183 days in a calendar year and is taxed on income accruing or arising from sources both within and outside the Republic.
Tax-residency
A calendar year is the same as a tax year. It does not matter the purpose of being in Cyprus, nor is it a condition that a Cyprus tax resident person owns or rents accommodation in Cyprus. It is literally based on the number of days without any further conditions.
As of 1st January 2017, an individual will also be considered a Cyprus tax resident if he/she:
It is noted that, if the employment/business or holding of an office as per (b) above is terminated, then the individual would cease to be considered a Cyprus tax resident for that tax year under the 60 days tax residency scheme.
For calculating and meeting both the “183 days rule” and the “60 days rule”, the below are considered:
Tax residents
Tax residents are taxed on income accruing or arising from sources both within and outside the Republic. Such income can derive from:
Non-Tax residents
Benefits in Kind
The taxation of benefits is provided in Article 5 of the Income Tax Law, according to which benefits from any office or employment, provided to an employee or to a member of his family either in cash or otherwise, are subject to tax.
Benefit in kind means the benefit that is, or is deemed to be, granted in connection with any employment or the holding of an office.
The rules apply with reference to benefits in kind provided to:
When the benefit is granted to a member of the family or household of the person who is employed or holds the office, then the benefit shall be deemed to be provided to that person.
Employers are required to keep records indicating how the value of the benefits in kind has been determined and such records should be available for inspection when requested by the Tax Department.
Since benefits in kind are taxed in the same way as salaries, the employer who will bear the cost of providing them will be able to deduct such cost from his taxable income under the same conditions that it would be deducted had it been a salary payment.
Any person providing "benefits in kind" to an employee and any company or corporation providing benefits to its officers, even in cases where it does not have employees, is considered as an employer by the Tax Department and should register on the Employers' Register and receive a T.I.C, which will enable the submission of the Employer's Return (T.D. 7).
The value of benefits in kind is taxed in the same way as the gross earnings, through the submission of the Form T.D. 7. Employers are required to declare the benefits in kind provided by them or by their connected companies.
Categories of Benefits in Kind
Exemptions
As a general principle, exemptions apply only to the extent where the payment or reimbursement to the employee is made against actual costs supported by payment receipts. They don't apply where the relevant benefit in kind takes the form of cash.
Other specific exemptions mentioned in the guide include amongst others:
The following types of income are exempted from income tax:
All expenses incurred wholly and exclusively for the purposes of generating taxableincome and which are supported by proper and reliable documentation, can be considered as tax deductible. These can include the following:
The following expenses cannot be deducted from the income in the computation of taxable income:
Personal tax allowances
Tax credit for foreign tax paid
Any foreign tax paid can be credited against any Cyprus income tax payable on the same income.
Losses
Individuals who have an obligation to prepare audited financial statements may carry forward tax losses incurred during a tax year over the next five years, to be offset against taxable income. Where person, including a partnership, converts a business into a limited liability company, any unutilised tax losses can be transferred to the new company.
A Cyprus tax resident individual is any person who is physically present in Cyprus for more than 183 days in a calendar year and is taxed on income accruing or arising from sources both within and outside the Republic.
Tax-residency
A calendar year is the same as a tax year. It does not matter the purpose of being in Cyprus, nor is it a condition that a Cyprus tax resident person owns or rents accommodation in Cyprus. It is literally based on the number of days without any further conditions.
As of 1st January 2017, an individual will also be considered a Cyprus tax resident if he/she:
It is noted that, if the employment/business or holding of an office as per (b) above is terminated, then the individual would cease to be considered a Cyprus tax resident for that tax year under the 60 days tax residency scheme.
For calculating and meeting both the “183 days rule” and the “60 days rule”, the below are considered:
Tax residents
Tax residents are taxed on income accruing or arising from sources both within and outside the Republic. Such income can derive from:
Non-Tax residents
Benefits in Kind
The taxation of benefits is provided in Article 5 of the Income Tax Law, according to which benefits from any office or employment, provided to an employee or to a member of his family either in cash or otherwise, are subject to tax.
Benefit in kind means the benefit that is, or is deemed to be, granted in connection with any employment or the holding of an office.
The rules apply with reference to benefits in kind provided to:
When the benefit is granted to a member of the family or household of the person who is employed or holds the office, then the benefit shall be deemed to be provided to that person.
Employers are required to keep records indicating how the value of the benefits in kind has been determined and such records should be available for inspection when requested by the Tax Department.
Since benefits in kind are taxed in the same way as salaries, the employer who will bear the cost of providing them will be able to deduct such cost from his taxable income under the same conditions that it would be deducted had it been a salary payment.
Any person providing "benefits in kind" to an employee and any company or corporation providing benefits to its officers, even in cases where it does not have employees, is considered as an employer by the Tax Department and should register on the Employers' Register and receive a T.I.C, which will enable the submission of the Employer's Return (T.D. 7).
The value of benefits in kind is taxed in the same way as the gross earnings, through the submission of the Form T.D. 7. Employers are required to declare the benefits in kind provided by them or by their connected companies.
Categories of Benefits in Kind
Exemptions
As a general principle, exemptions apply only to the extent where the payment or reimbursement to the employee is made against actual costs supported by payment receipts. They don't apply where the relevant benefit in kind takes the form of cash.
Other specific exemptions mentioned in the guide include amongst others:
The following types of income are exempted from income tax:
All expenses incurred wholly and exclusively for the purposes of generating taxableincome and which are supported by proper and reliable documentation, can be considered as tax deductible. These can include the following:
The following expenses cannot be deducted from the income in the computation of taxable income:
Personal tax allowances
Tax credit for foreign tax paid
Any foreign tax paid can be credited against any Cyprus income tax payable on the same income.
Losses
Individuals who have an obligation to prepare audited financial statements may carry forward tax losses incurred during a tax year over the next five years, to be offset against taxable income. Where person, including a partnership, converts a business into a limited liability company, any unutilised tax losses can be transferred to the new company.
