Cyprus introduces installment payments for overdue taxes

The Cyprus House of Representatives approved on Friday 27th of January 2017 a bill which provides for the payment of overdue taxes by monthly installments.

The scheme covers income tax, VAT, special defense contribution, immovable property tax, capital gains tax, stamp duties, special contribution for employees, pensioners and self-employed persons, and inheritance tax.

According to this new law the repayment scheme provides for 54 monthly installments for tax obligations below €100,000, and 60 monthly installments in the cases where the obligations exceed €100,000.

The tax commissioner has also been provided with the discretion to rule on discounts on interest and penalties on a case-by-case level.

Interested parties must submit an application within 3 months of the date on which the new law becomes effective.  The date of implementation has not yet been determined and is expected to be announced by the tax department soon.

Our team of professionals can assist you with detailed guidance in relation to the above matter and with the preparation and submission of the relevant applications.