Cyprus Lawyers G. Kouzalis LLC informs as to the amendment of the Income Tax Law 2002 to 2020.
The House of Representatives voted the amendment of the Income Tax (Amendment) (No.2) Law of 2020.
According to the Law, property owners are given a tax incentive in the form of tax credit to reduce rents. More specifically, a person who earns income from renting properties is granted a tax credit equal to 50% on the reduction of the monthly rent for which a person has voluntarily made a reduction and covers a reduction within the range of 30-50% of the monthly rent.
Means that:
- The tax credit is granted to reduce rents not exceeding three months in 2020, regardless of the agreed months of the reduction.
- The Rent reduction is made by written agreement between the owner and the tenant.
- Credit is not granted if the owner and tenant are related persons.
- The tax credit can be used against the total tax resulting for the tax year 2020.
- Any refundable tax arising from the credit may not exceed the amount of tax paid.
For more information on the Law on Income Tax (Amendment), (No. 2) Law of 2020 do not hesitate to contact our firm G. KOUZALIS LLC- Law Office at lawfirm@cytanet.com.cy or call at 23811788.