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Archives for February 2018

Extension on law Regulating the Settlement of Overdue Taxes

GOVERNMENT GATEWAY PORTAL (ARIADNI)

The House of Representatives approved a bill on 03.01.2018, which states that all legal entitles and physical persons who submit their tax returns for all years up to and including 2015 before 30.06.2018, could benefit from the provisions of the law on the repayment of arrears, extending the previous deadline by 6 months.

The law regulating the settlement of overdue taxes entered into force on 3 rd of July 2017 and provides details of the process and the years to which the scheme will apply as well as discount to be provided.

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19% VAT charge on Cyprus plots of land

On the 3 rd of November 2017, an amendment to the VAT legislation has been voted into Law by the House of Representatives in relation to the imposition of VAT at 19% on land transactions for business purposes.

Specifically, the Law provides for VAT to be charged on the following transactions:

  • Leasing of immovable property (land and commercial buildings, other than residential buildings) to a taxable person for the purpose of making taxable activities, except in case of building leasing which is used as a residence. The lessor has the right to choose not to tax the above transaction under certain conditions provided he notifies the Tax Commissioner accordingly.

This new provision enters into force from 13.11.2017 (Publication date of the amendment law 157(I)/2017).

  • Transfer of non-developed building land which is intended for the construction of one or more structures in course of carrying out a business activity.

This new provision enters into force from 2.1.2018.

 

Additional specifications of the amendment law:

Vat must be accounted for in relation to transactions involving the transfer of immovable property during the process of loan restructuring or forced transfer procedure.

In these cases, the recipient of the immovable property must account for Vat under the reverse charge provisions, provided that he is a taxable person and the property received is used for business purposes.

This new provision enters into force from 2.1.2018.

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