Defense contribution tax withheld on rents
The relevant law was amended so that the obligation to pay the Defence contribution tax withheld on rents was determined in two semi-annual installments instead of monthly.
Reduced value-added tax (VAT) rate of 5% for residences
The relevant law has been amended so that the reduced rate of value-added tax (VAT) of 5% is applied for the first 130 square meters (sq.m) of the building area of a residence up to the value of €350,000, provided that the total value of transaction does not exceed €475,000 and the total buildable area 190 sq.m.
Extension of the deadline for submitting an individual’s tax return
The Council of Ministers has issued an extension of the deadline for submitting an individual’s tax return and paying the tax due for the tax year 2022 according to which the deadline for the tax return for the tax year 2022 by a person other than self-employed (electronic Income Statement of an Individual (other than self-employed) 2022), as well as the deadline for the payment of the tax due in accordance with the said return (self-taxation), is extended until October 2, 2023. The deadline for submitting the tax return for the tax year 2022 by a self-employed person who is not required to prepare audited accounts ( electronic Self-Employed Income Statement 2022), as well as the deadline for paying the tax due according to the said statement (self-taxation), is also extended until October 2, 2023.
Exemption from the obligation to submit a tax return for natural persons for the year 2023
The Council of Ministers issued an announcement on the exemption from the obligation to submit a tax return for natural persons for the year 2023, according to which any natural person who during the year 2023 has a gross income that does not exceed the amount of €19,500 (nineteen thousand five hundred euros), is exempt from the obligation to submit a tax return for the year 2023.
Tax exemption of 50% of the remuneration of a natural person in the case of his first employment in Cyprus
An amendment has been made to the relevant law so that a person who resided abroad before the commencement of his first employment in Cyprus can benefit from the tax exemption provided for in the current legislation, amounting to 50% of the remuneration until the end of the period of seventeen tax years regardless of whether the first employment changes.
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