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A Limited Company pays a Corporate Tax in Cyprus, i.e., corporate income tax of 12.5% of its profit. There is no other Cyprus tax on a Limited Company’s profit.

The company balance sheet, which is drawn up by an accountant, has to be audited. Cyprus is the only country in the world where all balances have to be audited regardless of the size of the company. The audit certifies the correctness of the accounts, for the tax department. A direct external audit like it is done by the tax authorities in other countries, is unknown in Cyprus. In the middle of the current year the Cyprus Limited Company estimates its profit and pays the amount of tax arising from that estimation. If the profit later turns out to be higher or lower, this is balanced out at the end of the year, whereby both the State, and if necessary the company pay interest on the excess amount withheld.

Every Cyprus incorporated company is obliged to pay an Annual Levy yearly. The Annual Levy is €350 for every company and is payable from the year of company incorporation. After that, the annual levy has to be paid latest by June 30 each year. It easily can be paid by credit card or bank transfer, no intermediate is necessary.

In 2019 Cyprus reformed its general Healthcare System. Followings examples like Germany, it now provides services to everybody. It is financed mainly by contributions. Practically everybody will contribute in some manner. The most relevant information in this context is that shareholders of Cyprus limited companies contribute with 2.65% of their dividend income.

Quick Info:

Corporate Tax for Limiteds = 12,5% of Profit
Annual Levy for Limited only = 350 € / a

For shareholders, there also is a contribution for the General Healthcare System which at the moment is at 2,65% on dividends.

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