Payment of Tax (PAYE) to the Cyprus Tax Department withheld by Cypriot employers
The Cyprus Tax Department informs that as of 1 March 2018, the monthly payment of tax deducted by employers in Cyprus (PAYE with Tax Code 0100) and bearing no interest and charges will be possible ONLY via the JCCsmart service. The payment of the above tax to the Cypriot tax department where it is subject to interest and charges is made ONLY to the District Tax Offices.
Compulsory electronic submission of Income Tax Returns for Cypriot Individuals 2017 via taxisnet
The Cyprus Tax Department informs that, the Cyprus Income Tax Return for Cypriot individuals 2017(Cyprus employees / Cyprus self-employed) is submitted only electronically via TAXISnet. In order to submit the Cyprus Income Tax Return, you need to register to the TAXISnet system
Imposition of 19% VAT on building land in Cyprus
Cyprus Tax Department announces that from January 2, 2018, VAT will be charged at a rate of 19% on building land in Cyprus in the following cases:
1. transfer of possession,
2. transfer of an indivisible portion,
3. Transfer of ownership by virtue of a contract or a sale agreement or an agreement which expressly provides that the ownership will be transferred in the future or a lease agreement with the right to acquire developed buildable land intended for the construction of one or more constructions and carried out in the context of an economic activity.
No VAT will be levied on the sale of shares or company shares for property rich companies
Rental – Lease of immovable property for business purposes in Cyprus
Cyprus Tax Department announces that from 13 November 2017 VAT will be levied on taxable persons for the purposes of taxable business activity on the letting of immovable property.
Buildings used as dwellings are exempt
The Lessor is entitled under terms and conditions set by the Cyprus tax department to choose not to levy VAT on the Lessee of immovable property. The choice is irrevocable.
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Accordingly no person, entity or corporation should act or rely upon any matter or information as contained or implied within this publication without first obtaining advice from an appropriately qualified professional person or firm of advisors, and ensuring that such advice specifically relates to their particular circumstances.
PKF Cyprus firms are member firms of the PKF International Limited network of legally independent firms and do not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms.