The Cyprus Parliament has recently approved and voted the bill proposed by parliamentary parties which regulates the payment of overdue taxes in various monthly instalments. The Law was published in the Cyprus Gazette newspaper on 03/02/2017.

This new Law gives the Tax Commissioner the right to reduce the interest and penalties applicable to overdue income taxes, capital gains tax, stamp duties, SDC and VAT provided the taxpayer meets certain obligations.

The Law provides that any amounts owed to the Tax Office which are under €100.000 will be payable in 54 monthly instalments (with a minimum payable instalment being €50) whereas amounts in excess of €100.000 will be payable in 60 monthly instalments (with a minimum payable instalment being €1.850).

Persons wishing to enter such arrangements must submit an application. The Tax office is expected to issue guidance on the application, requirements and conditions in the following weeks.

It should be noted that the Law excludes companies and individuals who are under examination by the Tax Office in respect of any undeclared transfers or deposits held outside Cyprus.