On 29 September 2017, the House of Representatives of the Republic of Cyprus voted a legislation by which it has extended the deadline for submission of a request for the settlement of tax arrears from 3 October 2017 to 3 January 2018.
In addition, this new legislation restricts the time frame by which tax returns up to the tax year 2015 that are not yet filed may be submitted, by 30 June 2018 in order to benefit with the provisions of the law.
It is pointed out that this law refers to a variety of taxes both direct and indirect, and in specific to:
2.Special contribution for the defense
3.Immovable property tax
4.Capital gains tax
6.Special contribution for employed, retired and self-employed in the private sector
7.Special contribution for refugees
9.Value Added Tax
The regulation covers the following taxes due:
(a) All taxes that are in arrears up to and including 31 December 2015, which at the date of the application to join the scheme of payments, have been assessed by the Inland Revenue and appear as payable, regardless of the method that they are repaid either by agreement with the Tax Department or via a court order .
(b) Amounts which become payable as a result of the submission of a self-assessment in respect of the tax years up to 31 December 2015 in the situation that the tax returns for the relevant tax year have already been submitted by 3 July 2017, but without payment of the tax due.
(c) the Taxes due which are assessed after 3 July 2017 by the inland revenue relating to tax years until 31 December 2015, provided that these tax returns will be submitted by 30 June 2018. In such a case, an application for settlement shall be made within three months from the date on which the tax becomes payable, on the basis of the tax assessment which has been issued.
Moreover, it is worth to point out that as from 16 July 2015 individuals who are considered as non-domiciled in Cyprus are not subject to tax in Cyprus on dividends and interest received.
We are at your disposal to discuss with you the above developments and to assess how these may impact your current financing arrangements.