ARTICLE · 25 APRIL 2023

Cyprus Self Employed Person - Quick Summary

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Cyprus Self Employed Person - Quick Summary

CyprusTax

Kyriakos Tramountanellis

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SELF EMPLOYED PERSONS

Characteristics

Are taxed on profits, not turnover
Expenses incurred for the running of the business are tax allowable (deducted for tax purposes)
Are taxed on the PAYE tax brackets of the employed persons
When their turnover exceeds Euro 70,000 annually, audited financial statements must be prepared just like companies
Must be VAT registered and follow VAT rules and regulations
Can register as employers and be responsible personally for their staff payroll taxes, just like companies
Are frequently scrutinized by the VAT and Income Tax offices (more often than companies)
Are personally liable to VAT and Income Tax offices (unlike companies)

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