Quick Search

ID or string


Advanced Search

Latest Properties
Coralli Shore Habitat Atlantida C Flat 203
Coralli Shore Habitat Atlantida C Flat 202
Coralli Shore Habitat Atlantida C Flat 201
Coralli Shore Habitat Atlantida C Flat 104
Coralli Shore Habitat Atlantida C Flat 102
Coralli Shore Habitat Atlantida C Flat 101
Coralli Shore Habitat Atlantida B Flat 304
Coralli Shore Habitat Atlantida C Flat 103



  Recomended projects

see on the map >>


   Weather in Cyprus
Home arrow Legal and Finance arrow Losses carried forward
HomeCyprusServicesLegal and FinanceContactsNewsCalculators
Losses carried forward PDF Print E-mail
The tax loss incurred during a tax year and which cannot be set off against other income, is carried forward and set off against future profits. This provision is applicable for all losses incurred from 1997 tax year onwards.

The loss of one company can be set off against the profit of another provided the companies are Cyprus tax resident companies of a group.

Group is defined as:


(a)  One company holding at least 75% of the shares of the other company.

(b)  At least 75% of the voting shares of the companies are held by another company.


Partnership or sole trader transferring business into a company can carry forward tax losses into the company for future utilisation.


Losses from a permanent establishment abroad can be set off with profits of the company in Cyprus. Subsequent profits of the permanent establishment abroad are taxable up to the amount of losses allowed.




Transfers of assets and liabilities between companies can be effected without tax consequences within the framework of a reorganisation.


Reorganisations include:

(a) mergers

(b) demergers

(c) transfer of activities

(d) exchange of shares


International business companies (IBCs)


Up to 31 December 2002, IBCs are subject to tax at the rate of 4,25% irrespective of where management and control is exercised. As from 1 January 2003, IBCs are subject to tax in Cyprus if management and control is exercised from Cyprus, at the rate of 10%. All provisions mentioned above are also valid for IBCs.


Transitional period rules

IBCs and international branches, are entitled to elect to be taxed with the transitional period rules for the tax years 2003, 2004 and 2005 provided that during the tax year ended on 31 December 2001 they had income from sources outside Cyprus or they had activities during 2001 which resulted to income at a later stage.


During the transitional period the tax rate is 4,25%. The following provisions do not apply:

50% exemption from tax of interest income

exemption from tax of dividend income from abroad

exemption from tax on profit from disposal of securities

group relief of losses

tax exemptions on reorganisations

credit of foreign taxes in the absence of double tax treaty


During the transitional period the provisions of defence contribution are not applicable.




< Prev   Next >

© Copyright with   eca3Dmediapro   2018