Topic 3 Key players in the taxation system
Individuals and companies residing or operating in Cyprus are liable to income tax in respect of their worldwide income. An individual is considered a tax resident in Cyprus, if they are present more than 183 days in a tax year in the Republic. The days of presence in the Republic are calculated as follows:
- the day of arrival into the Republic is considered to be a day in the Republic
- the arrival into the Republic and departure from the Republic on the same day is considered to be a day in the Republic and
- the departure from the Republic and return to the Republic on the same day
A company is resident in Cyprus, if its management and control are exercised in Cyprus.
The personal income tax rates applicable to an individual’s taxable income are as follows:
Reporting and payment of taxes for an individual residing in Cyprus takes place through the TAXISnet platform of the Tax Department, Ministry of Finance, Republic of Cyprus. TAXISnet Service consists of two separate systems and different registration is required for each system:
- TAXISnet Registration for Income Tax/Defence,
- TAXISnet Registration for VAT/VIES.
How to register online to TAXISnet : The electronic registration form is accessible via the Internet at the following addresses: http://taxisnet.mof.gov.cy OR http://www.mof.gov.cy
The following information is required for registration:
- The taxpayer’s identification code.
- Full name
- Postal address
- At least one telephone number (home, work or mobile)
- Email address
- Choice of income Tax Return Form