On 27 January the Cyprus parliament approved a new law which provides for the payment of overdue taxes by monthly installments. The taxes eligible are income tax, VAT, special defence contribution, immovable property tax, capital gains tax, stamp duties, special contribution for employees, pensioners and self-employed persons, and inheritance tax (which was abolished in 2000). The new law allows arrears to be repaid by 54 monthly instalments for tax obligations below €100,000, and by 60 monthly instalments in the cases where the obligations exceed €100,000. The new law also gives the Commissioner for Taxation discretion to grant discounts on interest and penalties on a case-by-case level.
The date of implementation of the new law is to be determined by the Tax 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 the recovery measures at the disposal of the department.
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