Recently, the House of Representatives voted and amended the definition of "restructuring" in all tax laws of Cyprus.
The definition of "restructuring", along with other amendments adopted by the Cypriot tax laws, was introduced around December 2015 to temporarily exclude the restructuring of loans from taxation. The purpose of the then change was to encourage the restructuring of non-performing loans
Under the 2015 amendment, the above exception would have lasted for two years starting from 31 December 2015, i.e. it would have been in force until 31 December 2017. The House of Representatives, however, voted and passed the laws N. 131 (I) / 17 to N.137 (I) / 17 with an extension to the temporary exemption for a further two years until 31 December 2019.
The above amendment affects the laws on the Special Contribution for Defence Law, the Tax Collection Law, the Capital Gains Tax Act, the Income Tax Law, the Value-Added Tax Law, the Stamp Duty Law and the Law of the Land and Surveys Department (Fees and Rights).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.