Recently there have been new developments in the Cyprus tax legislation. A new law “domicile law” is now prepared which is similar to that of the UK and is expected to pass as a new law during the year 2015. The proposals under discussion relates to “non-domicile” individuals. Based on our understanding, individuals who are tax resident in Cyprus and also considered as “non-domiciled” in Cyprus would not be subject to special contribution for defense tax. In general, this would mean that the “non-domicile” individuals’ income from dividend and passive interest should not be subject to Cyprus taxation. However at present, we can not confirm the exact content and time frame for such proposals.

May 2015

 

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