The House of Representatives recently voted on further amendments to the Income Tax Law relating to the provisions of the Article 8(23A).

Article 8(23A) provides for a 50% exemption from income tax on the employment income of an individual who meets certain criteria. Following the recent announcement, we highlight the main amendments:

  • The term "1st employment" was replaced with the term "any employment" which allows the individual to continue to benefit from the 50% exemption even if they change employer. Previously the exemption was granted only on the 1st employment;
  • The exemption is allowed provided the individual was not resident of the Republic for at least 15 consecutive years prior to his or her 1st employment in Cyprus (previously 10 years);
  • The exemption is granted for 17 years from the date of employment or until the relevant article is revoked.

The amendments have retrospective effect from 01 January 2022.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.