Cyprus Corporate Tax

According to Cyprus corporate legal system all Cyprus tax resident companies are taxed on their income accrued or derived from all chargeable sources in Cyprus and abroad. Any company shall meet the definition of Cypriot residency if it is managed and controlled in Cyprus.

Based on the controlled foreign companies rules, any non-Cyorus tax resident company shall be taxed on income accrued from a business activity carried out through a permanent establishment in Cyprus and/or on income deriving from other sources in Cyprus.

Following the recent economic development in Cyprus, the corporation tax rate for all companies has been adjusted to 12.5%.

Corporate tax deductions for expenses:

As a rule of thumb, any expenses incurred wholly and exclusively with the intention of earning taxable income are deductible for corporate tax purposes. We at ConnectedSky possess the necessary experience and expertise to advice you on various restrictions that could be applicable.

Losses carried forward:

This area requires an in depth analysis and highly skilled personnel in providing clients with the best approach in utilizing potential losses of their Company. Trading losses may be carried forward and be set off against first future available profits, or they may be group relieved subject to predetermined conditions and obviously given that a company is part of a group.

ConnectedSky tax specialists possess the necessary technical expertise to provide our clients with the best possible solutions in utilizing losses and therefore minimizing their exposure to corporation tax. All in all, corporate tax legislation involves numerous complications and we feel we can successfully guide our clients through them, always with the best possible outcome in mind.

For more in-depth information on our Cyprus Corporate Tax experience please email us directly on

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