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  • Tax Update January 2019 - Clarification Circular issue 31

Tax Update January 2019 - Clarification Circular issue 31

25 January 2019

The Tax Department has recently issued the clarification circular 31 (in continuation to circulars 2017/4 and circular 17 issued in the past) in respect to the provisions of article 8(23) of the Income Tax Law.

More specifically, the circular clarifies that for the purposes of the application and calculation of the 50% exemption from taxation of the income deriving from Cyprus sources of an individual exceeding euro 100.000  in a tax year, such person can add to his annual income any income which derives out of any services provided in respect of a non executive director position, provided that the company to which the non executive director services are granted is a related company to the company which the person acts as an executive director.