The Cyprus Department of Revenue has issued a dedicated Interpretative Circular on Articles 8(21A) and 8(23A) on incentives for first employment in Cyprus.
On November 1, 2022, the Cyprus Tax Department issued Interpretative Circular 10/2022, which provides practical examples of tax incentives recently introduced for first employment in Cyprus under Articles 8(21A) as well as 8(23A) of the Income Tax Law.
The circular focuses on the following issues:
General explanations of the terminology "first employment", "income from first employment", "tax residence", etc. This regulation also contains detailed explanations regarding the application of both Art. 8 sec. 21A as well as Art. 8 sec. 21 A., and moreover, tips based on the examples used.
The recent amendment to the applicable law consisting in the introduction of enhanced incentives for both residents and non-residents is of great and practical importance for both employees and employers, who can potentially use employee services for up to 17 years.
For more information, please contact Eberhard Advisory's tax planning and advanced business structure team.
