An amendment to the Law regulating tax arrears 2017 (Law 4(I)/2017) was published in the Official Government Gazette on 22 September 2017. The initial Law introduced the procedure for paying tax arrears by monthly instalments. According to this scheme a waiver of interest and penalties of up to 95% for the following taxes was provided:
- income tax;
- value added tax;
- special defence contribution tax;
- capital gains tax;
- stamp duty; and
- special contributions payable by employees, pensioners and self-employed persons.
The law was ratified in February 2017,however it did not take effect instantly, in order to allow time for the required payment systems to be applied. Applications for the new scheme were accepted for three months after the enforcement of the Law. The law is effective since the 3rd of July 2017.
The recent law amendment provided an extension of six months to the applicants to submit their applications. Therefore applications may be submitted until the 3 January 2018. Additional provisions of the amendment include the submission of any pending tax returns for tax years up to and including 2015 by 30 June 2018.
Our tax experts would be happy to assist you with any advice in regard to tax planning and all Cyprus Tax matters.