Income Taxes in Northern Cyprus
Income tax is levied on income accrued in, derived from or received in Northern Cyprus. For permanent residents income arising within or outside Northern Cyprus is subject to income tax, but for the avoidance of double taxation a set off for income tax paid abroad is allowed.
Before income tax is charged, allowances granted to individuals under Income Tax Law of Northern Cyprus are as follows;
Contributions to Social Security Funds
Earned Income Allowance (20% for employees- 10% for self-employed)
Old Age Allowance (for the individuals who are at the age of 65 and over)
Individuals are liable to income tax under a progressive tax system. The personal income tax is levied at the statutory rates ranging from 20% to 45%.
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