Taxation of international executives
A person’s liability to Cyprus tax is determined by their residence status for taxation purposes.
The general rule is that a person who is a resident of Cyprus is assessable on worldwide income. A person who is a non-resident is only assessable on income accruing or arising from sources in Cyprus.
Net taxable income is taxed at graduated rates ranging from 20 percent to 35 percent. Non-cash benefits provided to employees are included in the employees’ income and subject to income tax. Persons exercising employment in Cyprus may also be subject to Social Insurance Contributions.
The official Cyprus currency is the Euro (EUR).
Herein, the host country/territory refers to the country/territory where the expatriate is going on assignment. The home country/territory refers to the country/territory where the expatriate lives when they are not on assignment.
All information contained in this document is summarized by KPMG Limited, the Cyprus member firm affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity, based on the Cyprus Income Tax Law of 2002 (L.118(I)/2002) as amended, the Special Contribution for the Defence of the Republic Law of 2002 (L.117(I)/2002) as amended, the Assessment and Collection of Taxes Law of 1978 (L.4/1978) as amended, the Stamp Duty Law of 1963 (L.19/1963) as amended, the Capital Gains Tax Law of 1980 (L.52/1980) as amended, the Immovable Property Tax Law of 1980 (L.24/1980) as amended, the Cyprus VAT Law of 2000 (N95.(I)/2000) as amended, the Social Insurance Law of 2010 (L.59(I)/2010) as amended and the General Healthcare System Law of 2001 (L.89(I)/2001) as amended.
© 2020 KPMG Limited, a Cyprus limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.