Tax Update – Repayment of overdue taxes in instalments

On 27 January 2017, the Cyprus House of Representatives passed legislation affording people the opportunity to repay overdue taxes in monthly instalments.

The law concerns debts to:

• VAT,
• Immovable property,
• Income tax,
• Temporary defence contribution,
• Capital gains tax,
• Inheritance tax,
• Stamp duty, and
• The temporary contribution in the public and private sectors.

In particular, overdue taxes under EUR 100,000 can be paid in 54 monthly instalments, whereas those exceeding EUR 100,000 can be paid in 60 monthly instalments.

The law also allows the tax commissioner the authority to decide on discounts, interest, and charges on a case by case basis. The House also passed an amendment, exempting people with undeclared money, deposits and transfers, that were located in Cyprus, or abroad, to the benefit of the same individuals or companies.