Cyprus:
The Cypriot Parliament voted to extend the application of Article 8 (21) of the Cyprus Income Tax Act
December 23, 2020
by
PwC Cyprus
To print this article, all you need to do is be registered or log in to Mondaq.com.
In the letter
On December 15, 2020, Amending Law No. 7 amending Article 8, Paragraph 21 of the Cyprus Income Tax Law was published in the Cyprus State Gazette.
In detail
On December 15, 2020, Amending Law No. 7 amending Article 8, Paragraph 21 of the Cyprus Income Tax Law was published in the Cyprus State Gazette.
Article 8 (21) grants a five-year income tax exemption for:
- 20% of the remuneration from employment in Cyprus or
- 8,550 EUR,
or persons who were not resident for tax purposes in Cyprus before the start of the employment relationship; The five-year exemption starts in the year following the start of your employment in Cyprus. Before the amending law, the last year of exemption was 2020.
The amending law extends the availability of the exemption until employment, which begins in 2025.
The Amending Act did not extend the duration of the exemption that a person can enjoy, that is, the duration of the exemption for a person is five years. For example, a person taking employment in Cyprus in 2025 can apply for the corresponding tax exemption for 2026-2030.
Take that away
The said enlargement ensures the attractiveness of Cyprus, which is why Cyprus is expected to continue attracting foreign workers to take up employment in Cyprus.
The content of this article is intended to provide general guidance on the subject. A professional should be obtained about your particular circumstances.
POPULAR ARTICLES ABOUT: Taxes from Cyprus
The rules for non-residence in Cyprus
ASC corporate and legal advisor
Does business and / or is employed by a Cypriot company and / or has an office in Cyprus with a tax resident Cypriot company for the same calendar year.