ARTICLE
19 July 2023

Amendment To Article 8(23A) Of The Income Tax Law

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Elias Neocleous & Co LLC

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Elias Neocleous & Co LLC is the largest law firm in Cyprus and a leading firm in the South-East Mediterranean region, with a network of offices across Cyprus (Limassol, Nicosia, Paphos), Belgium (Brussels), Czech Republic (Prague), Romania (Budapest) and Ukraine (Kiev). A dynamic team of lawyers and legal experts deliver strategic legal solutions to clients operating in key industries across Europe, Asia, the Middle East, India, USA, South America, and China. The firm is renowned for its expertise and jurisdictional knowledge across a broad spectrum of practice areas, spanning all major transactional and market disciplines, while also managing the largest and most challenging cross-border assignments. It is a premier practice of choice for leading Cypriot banks and financial institutions, preeminent foreign commercial and development banks, multinational corporations, global technology firms, international law firms, private equity funds, credit agencies, and asset managers.
The House of Representatives recently voted on further amendments to the Income Tax Law relating to the provisions of the Article 8(23A).
Cyprus Employment and HR

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.

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