1. Legal basis
2. Termination of relief
The relief regime from import and excise duties for goods imported for use by offshore companies or their expatriate personnel has been terminated since 31 December 2003.
- The Customs and Excise Duties Law of 2003 no. 224(I) of 2002, Section 17.
- The Customs and Excise Duties (Relief on Imported Goods) Regulations of 2004, P.I. 380/04, Regulation 13.
3. Motor vehicles under relief
In spite of the fact that the relief regime for offshore companies has been abolished, as mentioned earlier, entitled offshore personnel reserves the right to continue to possess a duty free vehicle which has been registered in their name prior to the 31st March 2003 in cases whereby they:
In case of disposal of the vehicle, the provisions of Regulation 12 of The Customs and Excise Duties (Relief on Imported Goods) Regulations of 2004, P.I. 380/04, will apply.
- change employment to another entitled offshore company;
- continue their employment in the same entitled company, which has extended its activities into Cyprus and has chosen to be taxed in accordance with the provisions of section 46 of the Income Tax Law, under the normal corporate tax rate;
- change their employment to another company which was entitled to relief but has chosen to be taxed in accordance with the provision of section 46 of the Income Tax Law, under the normal corporate tax rate.
For more information, you may write to the following address.