Tax Payers Given Rights To Claim Deemed Deductions On Article 33

20 December 2016 – Recently issued Circular 2016/15 now allows for tax payers to adjust their tax computations by including notional revenue and the corresponding notional expense on transactions that were not executed at market values and on normal commercial terms.

The tax payers' right to do so, is outlined in Circular 2016/15, which was issued by the Cyprus Commissioner of Taxation on 24 November 2016, and provides a clarification on the application of the amended Article 33 of the Income Tax Law 118 (I)/2002, as amended in December 2015.

Circular 2016/5 confirms that the arm's length tax adjustments may also be applied by the concerned taxpayers, instead by the Commissioner of Taxation, as was the case when Article 33 was amended.