The Cyprus parliament has enacted a number of laws to reflect the current economic situation and allow extra time for payment of taxes following the disruption to the economy that took place earlier in the year.
Immovable property tax
Immovable property tax is calculated on the taxpayer's aggregate property holding at 1 January each year on the basis of an assessed valuation as at 1 January 1980. It is generally payable no later than 30 September each year. For 2013 the payment date has been extended to 15 November 2013, and if the tax is paid by 15 October 2013 a 10% discount will be allowed.
Waiver of penalties for late payment of VAT
No interest or penalties will be charged in respect of late submission of VAT returns for quarters ended 28 February 2013, 31 March 2013, 30 April 2013 and 31 May 2013 as long as the return is submitted and the liability is paid no later than 10 December 2013. For VAT returns for quarters ending 30 June 2013, 31 July 2013, 31 August 2013 and 30 September 2013 the penalty for late payment will be reduced to 5% as long as the return is submitted and the liability is paid no later than 10 December 2013. In addition to the 5% penalty, interest will be payable at the rate of 4.75% per annum.
Annual levy on bank deposits
Since 2011 banks and credit institutions operating in Cyprus have been subject to an annual levy, payable in equal quarterly instalments, based on the amount of customer deposits at the end of the preceding year. In April 2013 the rate for 2013 was set at 0.15%. To take account of the special circumstances applying in 2013 the levy will be calculated quarterly at a rate of 0.0375% on deposits at the end of the preceding quarter. The period for payment of the liability originally due on 30 June has been extended to 31 July.
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.
