The exemption aims to maintain the appeal of Cyprus as a country and to attract employees by creating real infrastructure for businesses and help to establish new investments.
The Income Tax Law has been amended in December 2020, to extend the application of the 20% tax exemption for remuneration from employment for employees who were not Cyprus tax residents in the year before the start of their employment.
The extension is now granted for employment which commences up to the tax year 2025 and is for a period of 5 years, beginning the year following the year of employment.
Previously the extension was up to the tax year 2020.
The above amendment is applicable from January 1st, 2020.