CYPRUS INCOME TAX

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP57-00384R001200110080-1
• Release Decision: RIFPUB
• Original Classification: C
• Document Page Count: 2
• Document Creation Date: December 22, 2016
• Document Release Date: June 16, 2010
• Sequence Number: 80
• Publication Date: September 22, 1948
• Content Type: MEMO

Approved For Release 2010/06/16: CIA-RDP57-00384R001200110080-1
WNP 1DENTIAL,.
Chief, FBIB
Chief, Mediterranean Bureau, FRIS
Cyprus Income Tax
22 September 1948
1. In compliance with Yr. Shallaross's letter of 24 August
1948, copies of Cyprus laws pertaining to income tax are forwarded
herewith.
2. I have not liscussed the provisions of these laws with any
Cyprus Government officials, and do not plan to do so unless directed
by Aashington. I oonai-der it unwise to bring up this question on
a local level. The answer of the Cyprus Government might very well
be to bill the American employees for tax. I have discussed the
question informally with our attorney, Mr. George Chrysafinis. his
opinion is that the local government will probably expect our
Americans to pay the tax unless an exempti.an can be granted under
Section 8 of the law which applies to permanent official agents of
foreign countries. All em nloyers on the Island are required annually
to report the names, addresses and earnings of their employees to the
Commissioner of axation. It has been my clan not to include any of
the American employees on this return when submitted.
3. The Cyprus income tax is based on all income received in
Cyprus, including allowances and value of any quarters furnished.
On this basis, a CAF-12 receiving a salary of J8235.20, Cost of Liv-
ing xllowanee of $1920.00 and ;:quarters Allowance of $1500.00 would
be taxed on the total amount, and under the present rates would be
expected to pay a tax of $2049,80.
4. It is understood that American employees of FBIS in England
do not pay local income taxes and that their earnings are not reported
to the Government there. I strongly recoim end that every effort be
made to insure uniformity of treatment of our employees here with
those in England. Few, if any, of the Americans will be willing to
come to or remain in Cyprus if they sre to be taxed locally.
CONFIDENTIAL tOPY
Approved For Release 2010/06/16: CIA-RDP57-00384R001200110080-1
 Approved For Release 2010/06/16: CIA-RDP57-00384R001200110080-1
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