Director and Shareholder Loans and Employee Benefits

Loans to Directors or Shareholders:

Loans or financial aid given to directors, individual shareholders, or their close family (spouse or relatives up to the second degree) are considered a benefit. This benefit is assessed as a deemed monthly interest rate of 9% per annum, based on the sum received. This calculated interest is regarded as part of the recipient’s taxable income and must be reported accordingly.

Employee Benefits:

Any benefits provided to an employee or their family members, whether in cash or in kind, are taxable under income tax regulations.
For a comprehensive understanding of how benefits in kind are taxed, refer to the detailed guidelines provided by the Tax Department. The guidelines are available through an informative leaflet on the Tax Department’s website.

Disclaimer

Please note that the information provided here is for general guidance only and does not constitute professional tax advice. Tax laws and interpretations are subject to change, and individual circumstances can significantly affect tax obligations and benefits.

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For personalized tax advice tailored to your specific situation, we strongly recommend consulting with a qualified tax professional. Our team is equipped with the expertise to navigate the intricacies of Cyprus tax law and provide you with customized solutions. Contact us to ensure that you are making the most informed decisions for your tax-related matters.

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