Tax Update 29-Sept-2017
The House of Representatives has voted on 29 September 2017 the extension of the deadline for applying for the scheme regarding the settlement of taxes in arrears from 3rd October 2017 to 3rd January 2018.
A prerequisite for taxpayers in order to be able to benefit from the scheme and settle their overdue debts is to have filed their tax returns up until 2015. The deadline for submission all pending tax returns up to and including the year 2015 has also been extended to 30th June 2018.
The scheme offers taxpayers the option to settle their debts by paying a single lump sum and benefit from a 95% exemption from the additional financial charges imposed on them.
Alternatively, taxes in arrears can be paid in installments. Overdue debts under €100,000 can be paid in 54 monthly installments, whereas those exceeding €100,000 in 60 installments. Taxpayers opting to pay in installments benefit up to a 50 per cent reduction of penalties, such as interest, depending on the due amount.
Author: Marinos D Marinou Tax Planning specialist at D Marinou & Co EST 1988 offering a range of corporate services including company incorporation, audit, vat and tax planning in Cyprus companies and international Clients.