On 14 July 2022, the House of Representatives passed the following amendments to the Income Tax Law (“ITL”): Amendments to articles 8(21) and 8(23) of the Law,that provide for a 20% or 50% exemption fromincome tax for individuals that take up firstemployment in Cyprus. Amendments to article 9A of the Law, that providesfor a deduction...Read More

As on the 7th July 2022, the Cyprus House of Representatives passed amendments to the Income Tax Law, as follows: Increased deduction by 20% on the actual expenditure incurred on scientific research as well as research and development. According to the new provisions of the Law, an increased deduction of 20% will be granted on...Read More

Introduction of Transfer Pricing Documentation Requirements in Cyprus On 30th June 2022 the Cyprus Parliament approved the long awaited amendments to the Cyprus Income Tax Law and new Regulations to introduce Transfer Pricing (“TP”) documentation compliance obligations which closely follow the OECD TP Guidelines (as amended from time to time). The amendments to the Income...Read More

An important update to the Cyprus Companies Law, Cap 113, has been introduced as of the 9th June 2022, with the aim of simplifying accounting and audit practices for small size companies. These amendments shall become active upon publication in the Cyprus Gazette, and are summarized below. According the amendments of the Companies Law, companies...Read More

As of the 26th May 2022, the Cyprus Parliament approved amendments to the Special Defence Contribution (“SDC”) Law, whereby the SDC has been lowered to the rate of three percent (3%) relating to interest income which is derived by or from certain sources. According to the new provisions of the Law, the reduced rate will...Read More

The Cyprus Digital Nomad Visa Scheme was introduced in Cyprus with effect from October 15, 2021, pursuant to the decision of the Council of Ministers. Central to the new Scheme’s goals is, the strengthening and promotion of Cyprus as a hub for the provision of digital and electronic services and, in achieving this, contributing to...Read More

The following new circular which was issued by the Tax Authorities in Cyprus in early 2022, provides additional guidance and clarity as to the tax residency according to the legal provision of the 60-day stay in the Republic of Cyprus, under the Income Tax Law, Article 2. Application of the 60-day rule for obtaining tax...Read More

Cyprus Government has proceeded to extend, ad of the end of November 2021, the regulations relating to the granting of tax relief on loan restructurings. Persons can benefit from this scheme due to the extension which is now valid until the 31st December 2022. The exemptions and incentives granted are: No payment of stamp duty...Read More

As on the 15 October 2021 the Cyprus government presented its Action Plan for attracting companies to operate or expand their activities in Cyprus, in an attempt to make the island a Sustainable Business and Trade Centre of the broader region and Europe. The new tax incentive strategy has been prepared in a manner consistent...Read More

Working from Home Abroad – Employers’ Considerations Introduction With the recent shift in the work environment forced upon the globe under the COVID pandemic, we have seen a vast and swift change in the status quo as people were compelled to work remotely from home. In this historic shift, with both employees and employers realizing...Read More