The Income Tax Act is amended by a law passed with 26 votes in favor and 14 abstentions
Differentiation of criteria and provisions for a 50% tax deduction for workers repatriating to Cyprus and whose income exceeds €55,000 per year, the Plenary of the House of Representatives voted.
By a law passed with 26 votes in favor and 14 abstentions, the Income Tax Law is amended, so that a person who resided abroad before the start of his first employment in the Republic can benefit from a fifty percent (50%) tax exemption of the remuneration, until the exhaustion of the period of seventeen tax years and that this is not terminated in the event that the person changes employer, provided that this person was a non-resident of the Republic for at least fifteen years before his first employment, instead of ten provided for in current setting.
Based on the legislative framework that was in force until today, natural persons who, immediately before the start of their first employment in the Republic, were non-residents of the Republic for a period of at least ten consecutive years and whose remuneration from employment in the Republic exceeds €55,000 per year , are entitled to claim an exemption of 50% of their remuneration from the imposition of income tax for a period of seventeen years.
Taxpayers who have become beneficiaries under the existing tax exemption framework up to and including the date of application of the new law will continue to benefit from the measure until the end of seventeen years, provided they continue to work for their first employer.
Existing and new employees in the Republic who have not been resident in the Republic for a period of fifteen tax years prior to the start of the first employment will benefit from the tax exemption, without counting, for the purposes of applying the legislation, as a first employment any employment in the Republic which preceded their move abroad.
The tax exemption is granted for a period of seventeen consecutive tax years or until the repeal of the measure in question by a relevant amendment to the legislation, whichever occurs earlier.
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