Thursday, July 6th, 2023,
The new amendments dated June 30th, 2023, brought to article 8(23A) of the Income Tax Law “ITL” are the following:
The number of years whereby an individual should not have been resident in the Republic of Cyprus before commencing his first employment in the Republic in order to be allowed to claim the 50% exemption under the law has been increased from 10 to 15 consecutive tax years.
A change of employer for individuals who benefit from the 50% exemption under article 8(23A) of the Income Tax Law does not prevent them from continuing to benefit from the tax exemption during the years they are entitled to claim the 50% exemption under the law.
Furthermore, the amendments to article 8(23A) are cancelling the exemption benefit that applied during tax year of termination of employment in the Republic or at the end of the seventeen-year period under the Law in cases whereby the remuneration from employment in the Republic during the last twelve months exceeded €55,000.
Finally, the amendments do not apply to individuals who claimed the 50% exemption in 2022 under article 8(23A), as long as the conditions of article 8(23A) applying to them before the amendments still apply to them today, even if those individuals would not qualify for the 50% tax exemption under these new amendments.