The following measures* have been implemented in Cyprus in response to the first wave of the coronavirus pandemic:

 

1.    Improvement of taxpayer services:

 

1.1  All assessments are paid on-line.

 

1.2  Introduction of tax portal. Through tax portal, the taxpayer can see their debts, payments and create self-assessments and deduction at source obligations.

 

1.3  Introduction of payments through internet banking.

 

1.4  Support of taxpayers through specific phone-lines, according to the business needs of the taxpayers.

 

2.    We gave clarity following OECD guidelines on matters of residency and creation of permanent establishment. More specifically, dates when airports were closed do not count as days for establishing residency and employees working remotely cannot create a permanent establishment for their employer.

 

3.    We extended the submission dates of information that is automatically exchanged to be in line with EU Directives i.e. DAC 2 and DAC 6 (financial accounts information and reportable cross-border arrangements, respectively).

 

4.    We extended the submission date of information required under FATCA.

 

5.    Virtual meetings are promoted. All necessary face to face meetings are done under the decree requirements of the Minister of Health.

 

6.    To ensure compliance, laws have been amended so any refund will be given only if all tax returns due (IT, VAT) have been submitted.

 

7.    Extended the law for the application of reduction of debts due, in relation to tax years up to 2015, subject to conditions. Debts can be reduced up to 95%, in relation to interest and penalties, with requirement of submission and payment of all dues from tax year 2016 onwards.

 

8.    VAT Law as from 2/11/2020 has been amended, so as dues, the payment of which has been postponed until 10/11/2020 as a result of COVID-19 measures, to be paid in 6 instalments without interest and penalties between 10/11/2020 -10/4/2021.

 

9.    Office arrangements were made for vulnerable people that come into contact with the public or do not have their own office, so the expected distances are maintained. If this is not possible, remote working is allowed alternately up to a maximum of 50% of vulnerable staff.

 

10. To encourage voluntary compliance, tax returns can be revised by taxpayers within 3 years from the due date of submission. Any additional tax needs to be paid within 30 days of submission of the revised tax return. A revision cannot be made during the process of examination of the taxpayer. For years for which the last date of revision of tax returns ended prior the passing of the amending law, revision can be made within 6 months from the date of passing of the law which is 20/8/2020.

 

* Please note that job retention schemes and support to business schemes are the responsibility of the Ministry of Labour and Finance, respectively.

                              

The CATA 41st Annual Technical Conference

8-12 November 2021

This is a kind reminder to the conference that will be hosted at the Hilton Hotel in Nicosia Cyprus.

For further information, please visit our website and select the logo of the conference.