The Tax Department published a Notification on 23 July 2021 in the Cyprus Gazette, providing information and details regarding the process and the years to which the scheme for settlement of overdue taxes will apply.
The scheme covers the :
- Overdue taxes due for tax years from 2016 to 2019 (both inclusive)
- tax liabilities resulting from self-assessment made of tax years up to 2019 (inclusive) for which tax returns have been submitted
Businesses and individuals eligible for the settlement of overdue taxes and the scheme above must have suffered a decrease in their annual turnover by at least 25% in 2020 compared to 2019 due to Covid-19 AND either be:
(a) subject to VAT or
(b) exempt from the obligation to register for VAT.
Relief on interests and penalties will be given to businesses and individuals depending on the number of instalments selected as per table below:
|2 – 8||90%|
|9 – 15||85%|
|16 – 21||80%|
|22 – 28||75%|
|29 – 35||70%|
|36 – 42||65%|
|43 – 49||60%|
|50 – 56||55%|
|57 – 60||50%|
Payment and application for the scheme
The instalments are payable via net banking by using the unique reference number obtained from Ariadne portal.
The deadline for submission of applications is the 29th of April 2022 and the applications are submitted through the Ariadne portal.
For any clarifications, please contact us.