NEW AMENDMENT ON ASSESSMENT & COLLECTION OF TAXES LAW IN CYPRUS
The Assessment & Collection of Taxes Law has been recently amended and the new law (Law 163 (I)) and provides that provisional tax return should be completed and submitted to the Inland Revenue Department (IRD) offices on or before the 31st of July (rather than the 1st of August). Moreoever, the payment of the instalments will be done with only two payments (instead of three) , the first being on the 31st of July and the second on the 31st of December. The new Law will enter into effect as of the 1st of January 2013.
In case where any instalment is not paid within the prescribed date, interest will be charged at a rate of 5% per annum, plus 5% penalty. Also is cases where the provisional assessment is less than 75% of the final tax assessment a penalty of 10% will apply on the balance of the tax due.