#

Ease of Doing Business in

Cyprus

Cyprus Download Profile (1731.5KB, pdf)
Region Europe & Central Asia
Income Category High income
Population 1,165,300
GNI Per Capita (US$) 25,930
City covered Nicosia

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 45 41 down
4
72.65 72.48 down
0.17
Starting a Business 53 60 up
7
91.21 89.19 up
2.02
Dealing with Construction Permits 125 122 down
3
64.01 63.95 up
0.06
Getting Electricity 63 68 up
5
78.33 75.18 up
3.15
Registering Property 91 89 down
2
63.43 63.39 up
0.04
Getting Credit 62 42 down
20
60.00 65.00 down
5.00
Protecting Minority Investors 27 25 down
2
66.67 66.67
-
Paying Taxes 34 36 up
2
84.45 83.74 up
0.71
Trading across Borders 45 45
-
88.44 88.44
-
Enforcing Contracts 139 139
-
48.59 48.59
-
Resolving Insolvency 16 16
-
81.38 80.60 up
0.78

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB 2017 Rank:

34

DB 2016 Rank:

36

Change in Rank:

up2

DB 2017 DTF (% points):

84.45

DB 2016 DTF (% points):

83.74

Change in DTF (% points):

up0.71

Indicator Cyprus Europe & Central Asia OECD high income
Payments (number per year) info_outline 28 17.6 10.9
Time (hours per year) info_outline 127 221.5 163.4
Total tax rate (% of profit) info_outline 24.7 33.8 40.9
Postfiling index (0-100) info_outline 91.5 71.2 85.1
Tax or mandatory contribution Payments (number) Notes on Payments Time (hours) Statutory tax rate Tax base Total tax rate (% of profit) Notes on TTR
Social insurance 12 jointly 65 7.8% gross salaries 8.80
Corporate income tax 1 online 23 12.5% taxable profit 8.49
Social cohesion fund 0 jointly 2% gross salaries 2.26
Redundancy fund 0 jointly 1.2% gross salaries 1.35
Capital Gains Tax 1 20% capital gains 1.01
Interest tax 1 online 30% Interest income 0.77
Sewerage duty 1 0.5% of property market value as at 1 January 1980 market value of real estate 0.74
Industrial training fund 0 jointly 0.5% gross salaries 0.56
Special Contribution Fund 0 jointly Up to 1,500 (0%); 1,501 – 2,500 (2,5 with a minimum of €10); 2,501 – 3,500 (3%); 3,501 and over (3.5%) gross salaries 0.43
Municipal taxes 1 professional tax of EUR 1,452 + municipality license fees of EUR 171 fee schedules 0.14
Immovable Property Tax 1 online Various Rates Market Value of Real Estate as at 1 January 1980 0.07
Refuse collection duty 1 EUR 560 fixed fee 0.05
Vehicle tax 1 EUR 400 0.03
Fixed annual fee on companies registered in Cyprus 1 online EUR 350 fixed fee 0.03
Municipal property tax 1 various rates market value of real estate 0.02
Fuel tax 1 EUR 0.45 per liter fuel consumption 0.00 small amount
Tax on cheque transactions (stamp duty) 1 EUR 0.05 per cheque number of cheques 0.00
Employee labor contributions 0 jointly 0 to €19,500 @ 0%, 19,501 to €28,000 @ 20%, €28,001 to €36,300 @ 25%, €36,301 to €60.000 @ 30%, over €60.000 @ 35% gross salary 0.00 not included
Value added tax (VAT) 4 39 18% (19% as from 13 January 2014) value added 0.00 not included
Totals: 28 127 24.7
  • Answer
    Profit tax (% of profit) 9.5
    Labor tax and contributions (% of profit) 13.4
    Other taxes (% of profit) 1.7
    Answer Score
    Postfiling index (0-100) 91.5
    VAT refunds 88.0
    Does VAT/GST exist? Yes
    Frequency of VAT/GST refund submission monthly
    Does a VAT/GST refund process exist per the case study? Yes
    Restrictions on VAT refund process None
    Likelihood of VAT audit Unlikely
    Time to comply with VAT refund (hours) 6.0 88.0
    Time to obtain a VAT refund (weeks) 12.2 82.7
    Corporate income tax audits 95.4
    Does corporate income tax exist? Yes
    Likelihood of corporate income tax audit Unlikely
    Time to comply with a corporate income tax audit (hours) 4.0 95.4
    Time to complete a corporate income tax audit (weeks) 0.0 100.0
    Administrative appeal process
    First level administrative appeal authority Cyprus Tax Department
    Is the appeal authority independent? Independent department within tax office
    Are appeal guidelines accessible to the public? Yes
    Source of appeal guidelines in person at tax office
    Is there a legal time limit for the appeal authority to issue a decision on the tax appeal? No
    Legal time limit

Notes:

Name of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table.

The hours for VAT include all the VAT and sales taxes applicable.

The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.

The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit.

N/A = Not applicable.