Amending Law Published Regarding 50% Exemption of Employment Remuneration A recently published amending law has introduced changes to the 50% exemption of employment remuneration, as outlined in Article 8(23A) of the Income Tax Law. One significant amendment is the extension of the non-tax residency requirement. Previously, individuals needed to [...]
Payment of 1st provisional tax installment for 2023 We would like to remind you that the payment deadline for the 1st provisional tax installment for the tax year 2023 is the 31st of August 2023. The timely payment of provisional tax can be made by firstly creating the provisional [...]
Implementation of National Minimum Wage in Cyprus Beginning on January 1, 2023, the National Minimum Wage in Cyprus will be in effect. The relevant Decree issued by the Council of Ministers stipulates a gross starting salary of €855 per month for the first six months of employment. After six [...]
Court case raises questions about attribution of intangible-related profits A recent court case in Sweden has raised questions about how to attribute profits related to intangible assets, like trademarks. The case involved a Swedish company (AB) that paid a Maltese group company (Corp) for the use of a trademark [...]
Minimum Taxation Directive Introduction The European Union (EU) has recently reached an agreement on the Minimum Taxation Directive, which aims to ensure that large companies pay a minimum level of tax in the EU. This directive, also known as Pillar Two, is a set of rules agreed upon by [...]
Individual's Rates of Tax in Cyprus Individuals are subject to the following progressive personal income tax rates: Taxable Income € Tax Rate % Cumulative tax € 0 – 19.500 0 nil 19.501 – 28.000 20 1.700 28.001 – 36.300 25 3.775 36.301 – 60.000 30 [...]
Individual's Tax Residence in Cyprus A physical person is considered tax resident in Cyprus for any calendar year if he/she fulfills any one of the following two tests: Tax Residence tests A. 60 days Physical presence in Cyprus of at least 60 days in [...]
How do I become a tax resident in Cyprus? A person is considered a tax resident in Cyprus if they are physically present in the country for more than 183 days in a calendar year, or if they are physically present for at least 60 days and meet certain [...]
Deemed Dividend Distribution of 31 December 2022 We would like to bring to your attention the obligations arising from the deemed dividend distribution (DDD) provisions of the Special Contribution for the Defence Law that will be in effect on December 31, 2022. What profits are within the scope of [...]
Payment of 2nd provisional tax installment for 2022 We would like to remind you that the payment deadline for the 2nd and final provisional tax installment for the tax year 2022 is the 31st of January 2023. The timely payment of provisional tax can be made through the tax [...]
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