The House of Representatives approved unanimously the bill proposed by the parliamentary parties, which regulates the issue of payment of overdue taxes by monthly instalments. The provisions of the new legislation exclude individuals and companies which are under the microscope of the tax authorities for undeclared transfers or deposits held abroad.
The new law gives the right to the Tax Commissioner to reduce additional liabilities, such as charges, fines and interest, provided that certain obligations of the taxpayer are complied with.
Amounts owed under €100,000 will be payable by 54 monthly instalments, with the minimum instalment being €50. Amounts in excess of €100,000 will be payable by 60 monthly instalments, with the minimum instalment being €1,852.
The new law covers tax liabilities arising from the following laws:
- Income tax
- Value added tax (VAT)
- Special contribution for the defence
- Immovable property tax
- Capital gains tax
- Special contribution for employees, pensioners and self-employed persons in the private sector
- Stamp duty
- Inheritance tax.
Once making arrangements for the payment of overdue taxes by instalments, the tax department will not proceed to collect taxes under criminal or civil prosecution.
The taxpayer must submit an application for such arrangements within three months from the date that the new law will become effective (as determined by the Tax Commissioner), which application should be accepted by the Tax Commissioner.
The tax department will issue notices for determining the date of implementation of these provisions, as well as for setting the format for the submission of the application by the taxpayer. Also, it is expected that explanatory guidelines to the taxpayers will be issued for the proper implementation of the provisions of the new legislation.
Further information about this can be obtained by contacting Baker Tilly in Cyprus.
Neofytos Neofytou, email@example.com
Savvas Klitou, firstname.lastname@example.org