In Cyprus, both individuals and companies are subject to taxation.

For individuals, Cyprus operates a progressive tax system with tax rates ranging from 0% to 35% on the taxable income earned during a fiscal year (which is the calendar year). The tax system is residency-based, meaning that tax residents are taxed on their worldwide income, while non-residents are only taxed on their Cyprus-sourced income. There are also various deductions and exemptions available to reduce the taxable income, such as deductions for pension contributions and donations to charities.

For companies, the corporate tax rate is a flat rate of 12.5% on their taxable income. Dividends received by a Cyprus resident company are exempt from taxation in Cyprus, subject to certain conditions. Moreover, Cyprus has an extensive network of double tax treaties, which may reduce the tax burden for foreign investors in Cyprus.

Tax returns for both individuals and companies are generally due on or before the 30th of September following the end of the fiscal year. Companies are required to pay their taxes in installments throughout the year based on their projected income. Moreover, there are additional deadlines for specific taxes such as the Social Insurance and the VAT returns.

In Cyprus, the tax authority responsible for administering and collecting taxes is the Cyprus Tax Department. Payment of taxes can be made at designated banks or online through the TAXISnet system.

It is important to note that Cyprus has a complex tax system, with various incentives and exemptions available. Therefore, it is advisable for individuals and companies to seek advice from professional tax advisors to ensure that they comply with all tax obligations and take advantage of all available benefits.