Further to our previous newsfeeds
on this, on 8 July 2024 the Cyprus Tax Department issued Circular 04/2024 (the “Circular”)
entitled “50% exemption from Income Tax on remuneration from employment
exercised in the Republic”.
The Circular provides guidance, clarifications and practical examples regarding
the application of the exemption in accordance with the amended provisions of the
Income Tax Law as published on 30/06/2023, with retrospective effect as from 1
January 2022.
The
Circular will prove very helpful, especially for a number of cases where the
interpretation of the legislation itself was not sufficient to determine
whether the exemption could be granted.
People
intending to make use of the exemption provided by the Circular as well as
taxpayers already benefiting from it are advised to consider the provisions of
the circular and assess/reassess their position accordingly.
We are
at your disposal for any further information or clarifications, as well at to
discuss specific cases.
