On 1 November 2022, the Cyprus Tax Department issued the interpretative Circular 10/2022 which elaborates with practical examples on the tax incentives that have recently been introduced for first employment in Cyprus under articles 8(21A) and 8(23A) of the income tax law.
The Circular focuses on the below matters:
General explanations on the terminologies “first employment”, “income from first employment”, “tax residency” etc.;
Specific clarifications on the application of both Articles 8(21A) and 8(21A);
Guidance through applied examples.
The recent amendment of the existing law to introduce enhanced incentives, for both residents and not-residents, is of great importance for mutually the employees and the employers who could benefit from these for up to 17 years.
A copy of the originally published Circular can be found “here”.
For more information, please speak with our dedicated Tax Planning and Advanced Business Structuring team, or your usual contact at Elias Neocleous & Co LLC.