Approved amendments on tax legislation

A legislative package comprising three bills of law that amend existing tax legislation was approved on July 9, in an effort to further improve and modernise the existing legislative framework.

In particular, the “Income Tax (Amendment) Law of 2015” allows exemptions, discounts, loss compensation possibilities and transfer to subsequent years while at the same time removing existing distortions related to the widow’s pension tax.

Also, according to the “Special Contribution (Defence of the Republic) (Amendment) Law of 2015”, individuals who are tax residents of Cyprus and have domicile in the Republic will be subject to special defence contribution tax.

Finally, an amendment to the Capital Gains Tax Law exempts from capital gains tax the resale of land with a construction on it, on the condition that the said land was acquired between the entry into force of this amending law (namely the “Capital Gains Tax (Amendment) (No2) Law of 2015”) and the 31st December 2016.