In a country like Cyprus, taxation is built on the principle of loyal attitude to both legal entities and to individuals. However, loyalty to the state applies only to those who accept and promptly comply with the conditions for the preparation and filing tax returns.
In cases of delinquency, with the defaulter may be charged penalties, Cyprus their size is regulated depending on the term of the debt and is usually 10% APR for the repayment of the debt, plus an additional 5% over the past full months of delay.
The main taxes for businesses include:
Individuals-residents of Cyprus must pay a profit tax, which is established for all income received by a resident both inside and outside the country. From the payment of this tax residents are exempted, whose total annual income is less than 19 500 euro. In other cases, the tax rate, depending on the amount of revenue, can be 20%, 25% or 30%. Separately pay taxes on a foreign pension, the size of the rate in this case is an additional 5%. The taxable income of resident individuals does not include dividends, medical insurance payments, death benefits, and certain other social payments.