Financial management, accounting
Financial management, accounting
Title
General knowledge of Taxation in Cyprus - Physical and Legal Persons
Country
All countries
Description
Taxation of citizens and businesses is the main source of revenue for any state. Through taxes, the state collects the money needed to finance the services it provides to its citizens, such as education, health, defence, energy and infrastructure such as roads, schools, hospitals, water and sewage, etc. Surely, without taxes governments would not have the money for all this. This indicates the importance of the tax system.
This article intends to provide a general overview of income tax for individuals and legal entities for the year 2021, including recent adjustments due to the COVID-19 pandemic. Concepts such as tax resident of Cyprus, taxable income and income that is exempt from tax, expenses that are tax deductible and expenses that are taxed are explained. In addition, issues related to the indirect taxation of VAT are explained.