On 21 December 2021, an amendment to the Income Tax Law was published in the Cyprus Government Gazette. In accordance with the amended law, an additional corporate tax residency test is introduced.
Under the new law, a company incorporated or registered in Cyprus and the management and control of which is exercised outside Cyprus should be regarded as resident in Cyprus for tax purposes unless it is resident in another country for tax purposes. The revised law will come into force on 31 December 2022.
