English Tax Booklet 2018

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When and where are they submitted? INTRASTAT forms are submitted to the VAT authority no later than the 10th day which follows the end of the month stated on the INTRASTAT form. The VIES form is submitted to the VAT authorities no later than the 15th day which follows the end of the month stated on the VIES form. Penalties and interest Late registration Late submission of return Late payment of VAT Late de-registration Late submission of Intrastat form Late submission of VIES return €85 for every month of delay €51 one-off 10% of amount due plus 3,5% interest p.a. €85 one-off €15 for each return €50 for each return Imposition of 19% VAT on leasing and / or letting of immovable property for business purposes As from 13 November 2017, VAT at 19% is imposed on the leasing and/or letting of immovable property to a taxable person for the purposes of carrying on taxable activities, commencing on/or after 13 November 2017. The leasing of buildings used as residences remains an exempt transaction for VAT purposes. The lessor has the right to notify the Tax Commissioner by submitting a relevant form, to opt for the non-imposition of VAT to the lessee of the immovable property, subject to the terms and conditions specified in the relevant Notification of the Tax Commissioner. Imposition of 19% VAT on non-developed building land As from 2 January 2018, VAT at 19% is imposed on the transfer of non- developed building land. Specifically, VAT is imposed on the transfer of ownership, transfer of indivisible land portion, transfer of ownership under a sale agreement or an agreement which specifically provides that the ownership will be transfered on a future date or by virtue of a leasing agreement with the right to buy non-developed building land which is intended for the construction of one or more structures in the course of carrying out a business activity. Non-developed building land includes all non-developed land plots that are intended for the construction of one or more structures. In the above definition are included non-developed building land that is either covered or not from the water supply and cover land plots of all sorts as listed below: • Land plots under development • Finished land plots • Land plots with a final approval certificates or, • Land plots with land title Other types of land plots are also included in the list of non-developed building. 22
IMMOVABLE PROPERTY TAX Immovable Property Tax is abolished as from 1 January 2017. Until tax year 2016, the owner of immovable property situated in Cyprus was liable to pay an annual immovable property tax which is calculated on the market value of the property as at 1 January 1980, at the varying rates as noted in the table below, which apply per owner and not per property. Tax Rates Property value Rate Accumulated tax € ‰ € Up to 40.000* 6 240 40.001 - 120.000 8 880 120.001-170.000 9 1330 170.001-300.000 11 2760 300.001-500.000 13 5360 500.001-800.000 15 9860 800.001-3.000.000 17 47260 Over 3.000.000 19 * Property owners whose property has a total value of €12.500 or less (using values of 1.1.1980) are exempt from Immovable Property Tax. Exemptions - Public cemeteries - Churches and other religious buildings - Public hospitals - Schools - Immovable property owned by the Republic - Foreign embassies and consulates - Common use and public places - Property under Turkish occupation - Buildings under a Preservation Order - Buildings of charitable organisations - Agricultural land used in farming or stock breeding by the farmer or stock breeder residing in the area 23
Page 1 and 2: CYPRUS TAX INFORMATION 2018
Page 3 and 4: PERSONAL INCOME TAX Basis of Taxati
Page 5 and 6: Type of Income Remuneration from sa
Page 7 and 8: SPECIAL CONTRIBUTION As from 1 Janu
Page 9 and 10: Corporate tax deductions for expens
Page 11 and 12: Losses carried forward The tax loss
Page 13 and 14: Special types of companies Shipping
Page 15 and 16: SPECIAL CONTRIBUTION FOR DEFENCE Sp
Page 17 and 18: Deemed dividend distribution A Cypr
Page 19 and 20: 19
Page 21: Exemptions • Rents • Medical se
Page 25 and 26: TRANSFER FEES BY THE DEPARTMENT OF
Page 27 and 28: Occupational Category Lower Weekly
Page 29 and 30: STAMP DUTY The following table give
Page 31 and 32: Payments from Cyprus Payments of di
Page 33 and 34: (19) 5% if the dividend is received
Page 35 and 36: TAX DIARY DEADLINE End of each mont
Page 37 and 38: 37

English Tax Booklet 2018

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