All material subject to strictly enforced copyright laws. © 2022 ITR is part of the Euromoney Institutional Investor PLC group.

Cyprus: Important tax updates in Cyprus at the end of 2017

intl-updates

The Cyprus Parliament passed important amendments directly impacting taxpayers during the last quarter of 2017. This briefing focuses on the modifications concerning income tax, overdue taxes and tax exemptions on loan restructuring. These amendments have an impact on computations of tax obligations and include revised deadlines with which companies will have to comply when fulfilling their tax responsibilities.

Income tax

Amendments were made to the Income Tax Law 118(I)/2002 on October 5 2017. An important change was the increased allowance of 20% on tax deductible capital allowances for machinery and plants which was valid until the end of 2017. Moreover, the allowance for industrial and hotel buildings acquired during the tax year of 2017 was increased to 7% percent.

Overdue taxes

The amendment of Law 4(I)/2017 regarding outstanding tax liabilities aimed to extend the deadline for submitting applications for the regulation of outstanding tax liabilities by three months, from the previously set date of October 3 2017 to January 3 2018. Furthermore, it set the final deadline for the submission of all overdue tax returns at June 30 2018 on the condition that no tax returns would be accepted after this date. Applications relating to liabilities incurred up to December 31 2015 will be accepted only if (a) all tax returns have been submitted and (b) any taxes due after December 31 2015 have been fully paid or settled. Taxpayers who submit overdue returns by June 30 2018 will be able to incorporate/include taxes arising six months after the date of the notification of liability for the regulation of the outstanding tax liability plan.

Loan restructuring

Within the loan restructuring framework, the law provides for the non-imposition of taxes which relate to the restructuring of non-performing loans for the period between December 31 2015 and December 31 2017. The proposals passed by Parliament on October 5 2017 state that the non-imposition of taxes will be extended for an additional two years, to December 31 2019. The aforementioned change is important and has a direct impact on businesses restructuring their operations.

nicolaou.jpg
Kokoni

Maria Nicolaou

Zoe Kokoni

Maria Nicolaou (maria.nicolaou@eurofast.eu) and Zoe Kokoni (zoe.kokoni@eurofast.eu)

Eurofast Taxand

Tel: +357 22699222

Website: www.eurofast.eu

More from across our site

This week European Commission officials consider legal loopholes to secure minimum corporate taxation, while Cisco and Microsoft shareholders call for tax transparency.
The fast-food company’s tax settlement with French authorities strengthens the need for businesses to review their TP arrangements and documentation.
The full ALP model will be adopted through a new TP regime, which is set to boost the country’s investments and tax certainty.
Tax professionals have called on the UK government to reconsider its online sales tax as it would affect the economy at the worst time.
Tax professionals have called on companies to act urgently to meet e-invoicing compliance targets as the EU plans to ramp up digitisation.
In the wake of India’s ambitious 25-year plan for economic growth, ITR has partnered with leading tax commentators to discuss what the future will look like for India and for the rest of the world.
But experts cast doubt on HMRC's data and believe COVID-19 would have increased the revenue shortfall.
EY’s plan to separate its auditing and consulting businesses might lessen scrutiny from global regulators, but the brand identity could suffer, say sources.
Multinationals are asking world leaders to put a scale on carbon pricing to tackle climate change at the 48th G7 summit in Germany, from June 26 to 28.
The state secretary told the French press that the country continues to oppose pillar two’s global minimum tax rate following an Ecofin meeting last week.
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree