The Tax Department, released an update to inform that, following the successful implementation of the compulsory electronically payment of the P.A.Y.E. Deducted that came into force as from the 1st of March 2018, the electronically tax payments will be further implemented to other taxes as well.
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Both the (a) “Annual Fee” under section 4(2) of the Cyprus Registry Maintenance Annual Fee Law and the (b) “Tonnage Tax” for Cyprus ships under the Taxation of Owners of Cyprus Ships Notification of 2012 (P.I.137/2012) section 9 of the Merchant Shipping Law of 2010 (Law 44(I)/2010); are payable on the 31st of March each year.
The Cyprus Department of Merchant Shipping has decided to extend the date of payment for both the tonnage tax and annual fee of Cyprus flag ships to 2nd of April, given the fact that this year the 31st of March is a Saturday. Therefore the next working date is the Monday, 2nd of April 2018.
On the 3rd of November and 29th of December 2017, the House of Parliament voted the amendment of the Cyprus VAT Legislation regarding the taxation of building land, in order to align it with the provisions of EU VAT Directive.
The amendments relate to (1) the imposition of 19% VAT on the sale of building land, (2) the taxation of new commercial immovable property leasing contracts and (3) the application of reverse charge on transactions relating to transfers of immovable property during the process of loan restructuring.
For more details regarding the amendments voted, please click here.
On 29 September 2017, a law which extends the deadline for submission of a claim for the payment of tax arrears from 3 October 2017 to 3 January 2018 was passed by the House of Representatives of Cyprus.
The new law also limits the time by which tax returns up to the tax year 2015 not yet filed may be filed. All such tax returns must now be filed until 30 June 2018 to benefit with the provisions of the law.