ARTICLE
27 February 2017

New Law On Payment Of Tax Arrears Approved

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Elias Neocleous & Co LLC

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Elias Neocleous & Co LLC is the largest law firm in Cyprus and a leading firm in the South-East Mediterranean region, with a network of offices across Cyprus (Limassol, Nicosia, Paphos), Belgium (Brussels), Czech Republic (Prague), Romania (Budapest) and Ukraine (Kiev). A dynamic team of lawyers and legal experts deliver strategic legal solutions to clients operating in key industries across Europe, Asia, the Middle East, India, USA, South America, and China. The firm is renowned for its expertise and jurisdictional knowledge across a broad spectrum of practice areas, spanning all major transactional and market disciplines, while also managing the largest and most challenging cross-border assignments. It is a premier practice of choice for leading Cypriot banks and financial institutions, preeminent foreign commercial and development banks, multinational corporations, global technology firms, international law firms, private equity funds, credit agencies, and asset managers.
On January 27 2017 Parliament approved a new law which provides for the payment of overdue taxes by monthly instalments.
Cyprus Wealth Management

On January 27 2017 Parliament approved a new law which provides for the payment of overdue taxes by monthly instalments. The scheme covers a wide range of taxes, the most relevant of which for companies are:

  • income tax;
  • value added tax;
  • special defence contribution;
  • immovable property tax;
  • capital gains tax;
  • stamp duties; and
  • special contribution for employees.

The new law allows arrears to be repaid by:

  • 54 monthly instalments for tax obligations below €100,000; or
  • 60 monthly instalments for tax obligations above €100,000.

The new law also gives the tax commissioner discretion to grant discounts on interest and penalties on a case-by-case basis.

The new law's implementation date is to be determined by the commissioner. Pending the announcement of an implementation date, the Tax Department has announced that its staff will continue to carry out their duties in accordance with existing procedures and implement all of the recovery measures at the department's disposal.

Originally published by International Law Office .

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