Tax treatment of benefits in kind

The Cyprus Tax Department published, during October 2018, an informative guide which explains the tax treatment of certain benefits in kind offered by employers to employees and persons who hold or are deemed to hold an office.

The taxation of benefits in kind is provided in Article 5 of the Income Tax Law, according to which benefits from any office or employment, provided to an employee or to a member of his family, are subject to tax.

The guide describes how the Tax Department intends to apply the law as from 1 January 2019.