The Cypriot Parliament voted to increase the applying of Article 8 (21) of the Cyprus Revenue Tax Act – Tax

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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

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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.

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