Taxation in the TRNC

Corporate Tax

Companies/corporate bodies are liable to corporation tax at the rate of 10% (15% in 2003) on their

taxable profits and after deduction of such corporation tax, to an income tax at the rate of 15% (15% in 2003).

In effect the total tax of corporate bodies is 23.50%(27.75% in 2003).

Personal Tax

After deduction of personal allowance, earned income relief, wife and child allowance, etc., the income of an individual is liable to an income tax at a sliding scale between 10% and 40%.

VAT - Value Added Tax

 The standard rate is 15%. Other VAT rates vary between 0-20%.

 VAT on land & buildings varies between 0-5%.

Company Law in Northern Cyprus

The company law applicable within the TRNC is the same as the old 1948 Companies Act of UK.