Inland Revenue

Inland Revenue in Cyprus

The term Inland Revenue refers to the government department responsible for collecting taxes in Cyprus. This department ensures that individuals and businesses pay their fair share of taxes, which fund public services and infrastructure.

Role of Inland Revenue

The Inland Revenue in Cyprus handles various types of taxes. These include income tax, corporate tax, and value-added tax (VAT). The department also deals with tax compliance and enforcement, ensuring that everyone follows the tax laws.

Income Tax

One of the main responsibilities of the Inland Revenue is to collect income tax. This tax is paid by individuals based on their earnings. The rates can vary depending on the income level, with higher earners paying a higher percentage.

Corporate Tax

Businesses in Cyprus must pay corporate tax on their profits. The Inland Revenue ensures that companies report their earnings accurately and pay the correct amount of tax. This helps maintain a fair business environment.

Value-Added Tax (VAT)

The Inland Revenue also manages VAT, a tax on goods and services. Businesses collect VAT from customers and pass it on to the government. This tax is a significant source of revenue for Cyprus.

Tax Compliance and Enforcement

Ensuring tax compliance is a crucial function of the Inland Revenue. The department conducts audits and investigations to prevent tax evasion and fraud. This helps maintain trust in the tax system.

Conclusion

The Inland Revenue in Cyprus plays a vital role in the country's economy. By collecting taxes efficiently and fairly, it supports public services and infrastructure, benefiting all citizens.