An individual is liable for tax on his income as an employee and on income as a self-employed person.
Tax will be payable on income earned in Cyprus and overseas but excepting a salary received overseas by an individual who meets the test of a "permanent resident" of Cyprus.
A foreign resident who is employed in Cyprus pays tax only on income earned in Cyprus.
To be considered a resident of Cyprus, residence of at least 183 days in Cyprus during any calendar tax year must be established or a life that is centered in Cyprus.
An employer is obligated to deduct, immediately, each month, the amount of tax and national insurance due from a salaried worker.
A self-employed individual is obligated to make advance payments on income tax that will be offset on filing an annual report. The advance payments are made in three equal payments.
Certain payments are deductible from taxable income as detailed below.