Cyprus –based companies are taxed at a  rate of 12.5 per cent.

A company which is managed and controlled in Cyprus is a tax resident  of Cyprus. The key requirements for management  and control of a company are the followings

• The residence of the majority of the directors; • The location where the board meetings of the Company are held; • The location of the formation of the general policy of the Company

Companies which are tax residents of Cyprus are taxed on all income accrued or derived from all sources in Cyprus and abroad

A company must register with the Tax Department within 60 days of the incorporation day.

A non-Cyprus tax resident company is taxed on income arising from immovable property in Cyprus and on income accrued or derived from a business activity, which is carried on through a permanent establishment in Cyprus. Permanent establishment is a fixed place of business through which the business of an enterprise is wholly or partly carried on. The term permanent establishment includes a place of management, a branch, an office, a factory and a workshop.