ARTICLE
19 October 2017

Process Of Adjustment Of Tax Arrears Law Amended

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Elias Neocleous & Co LLC

Contributor

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.
The Process of Adjustment of Tax Arrears Law 2017 (Law 4(I)/2017) established a procedure for settling tax arrears by monthly instalments.
Cyprus Wealth Management

The Process of Adjustment of Tax Arrears Law 2017 (Law 4(I)/2017) established a procedure for settling tax arrears by monthly instalments. It provided a waiver of interest and penalties of up to 95% for all nationally imposed taxes, including:

  • 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.

Although the law was enacted in February 2017, it did not take effect immediately in order to allow time for the necessary payment systems to be implemented. The deadline for submitting applications to participate in the scheme was set at three months after the law took effect. The law took effect on July 3 2017 and the deadline for submitting applications was therefore October 3 2017.

The law was recently amended through Law 129(I)/2017, which took effect on September 29 2017. Law 129 (I)/2017 extends the deadline for submitting applications from three months after the law took effect to six months. Applications may now be submitted until January 3 2018. Further, the amendment relaxes the requirement regarding the submission of outstanding tax returns. The initial law required all tax returns for tax years up to and including 2015 to have been submitted before an application was made. Under the amended law, applicants must submit any pending tax returns for tax years up to and including 2015 no later than June 30 2018.

Previously published in International Law Office

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