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 resident in Cyprus mandatory pay income tax, which is installed on all income derived by a resident within the country and abroad. From this tax exempt residents whose total annual income is less 19 500 euros. In other cases, the tax rate, depending on the amount of income can be 20%, 25% or 30%. Separately payable taxes on foreign pension bet in this case is more 5%. In the taxable income of resident individuals not included dividends, medical insurance benefits, death benefits, as well as some additional benefits.