{"id":7978,"date":"2021-03-29T10:51:41","date_gmt":"2021-03-29T07:51:41","guid":{"rendered":"https:\/\/vrikislegal.com\/?p=7978"},"modified":"2021-03-29T10:54:38","modified_gmt":"2021-03-29T07:54:38","slug":"extension-of-tax-incentives-for-reduced-rent","status":"publish","type":"post","link":"https:\/\/www.vrikislegal.com\/he\/extension-of-tax-incentives-for-reduced-rent\/","title":{"rendered":"Extension of Tax Incentives for Reduced Rent"},"content":{"rendered":"<h1>Extension of Tax Incentives for Reduced Rent<\/h1>\n<p>The tax incentives provided to landlords for the voluntary reduction of rent charged to tenants &#8211; companies whose activities have been suspended due to the COVID-19 pandemic have been extended for the 2021 tax year.<\/p>\n<p>The Tax Law, along with the Special Defence Contribution Law, have been amended and clarify that qualifying landlords can claim a tax credit equal to 50% of the rent reduction voluntarily agreed and implemented between the landlord and the tenant provided that the said reduction does not fall below 30% of the monthly rental amount.<\/p>\n<p><u>Conditions:<\/u><\/p>\n<ul>\n<li>The relief provided for the rent decrease applies for a period of no more than 3 months and falls within the period from 01\/01\/2021 until 30 \/06\/2021, regardless of the months in which the rent reduction is valid;<\/li>\n<li>No tax credit is permissible for rental reduction that surpasses 50% of the monthly rental amount;<\/li>\n<li>The landlord and the tenant form a written agreement that regulates the terms of the rental reduction;<\/li>\n<li>The landlord and the tenant must not be related;<\/li>\n<li>the tax credit can be used for the total tax allocated for the tax year 2021;<\/li>\n<li>Any tax refund cannot exceed the amount of tax already paid.<\/li>\n<\/ul>\n<p><u>Special Defence Contribution (SDC):<\/u><\/p>\n<p>Special Defence Contribution is an additional method where qualifying landlords can claim an exemption. This however applies provided that the rental reduction is not below 30% of the monthly rent and the following conditions:<\/p>\n<ul>\n<li>The exemption from SDC is applies for no more than 3 months, starting from 01\/01\/2021 until 30\/06\/2021, regardless of the approved months of such reduction.<\/li>\n<li>The landlord and the tenant form a written agreement that regulates the terms of the rental reduction;<\/li>\n<li>The landlord and the tenant must not be related<\/li>\n<\/ul>\n<hr \/>\n<p>For any further guidance regarding this procedure or if you require an initial consultation, please do not hesitate to contact our Law Firm at <a href=\"mailto:info@vrikislegal.com\">info@vrikislegal.com<\/a>, +357 22 251 777 or +357 25 261 777 or please visit our office in Nicosia or Limassol.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Extension of Tax Incentives for Reduced Rent The tax incentives provided to landlords for the voluntary reduction of rent charged to tenants &#8211; companies whose activities have been suspended due to the COVID-19 pandemic have been extended for the 2021 tax year. The Tax Law, along with the Special Defence Contribution Law, have been amended [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":7990,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[110,78,18],"tags":[],"class_list":["post-7978","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-covid-19","category-finance","category-news"],"_links":{"self":[{"href":"https:\/\/www.vrikislegal.com\/he\/wp-json\/wp\/v2\/posts\/7978","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vrikislegal.com\/he\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vrikislegal.com\/he\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vrikislegal.com\/he\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vrikislegal.com\/he\/wp-json\/wp\/v2\/comments?post=7978"}],"version-history":[{"count":0,"href":"https:\/\/www.vrikislegal.com\/he\/wp-json\/wp\/v2\/posts\/7978\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vrikislegal.com\/he\/wp-json\/wp\/v2\/media\/7990"}],"wp:attachment":[{"href":"https:\/\/www.vrikislegal.com\/he\/wp-json\/wp\/v2\/media?parent=7978"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vrikislegal.com\/he\/wp-json\/wp\/v2\/categories?post=7978"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vrikislegal.com\/he\/wp-json\/wp\/v2\/tags?post=7978"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}