Certain changes on tax laws were voted by the House of Representatives on 11 July 2013 in order to provide financial assistance to the taxpayers due to the latest economic developments in Cyprus. These changes are as follows:
1. Immovable Property tax:
The immovable property tax for the fiscal year 2013 is extended for settlement from 30 September 2013 to 15 November 2013.
Any taxpayer who settles the tax after 15 November 2013 will be subject to a penalty of 10% on the tax due. Furthermore, any taxpayer who settles the tax before 16 October 2013 will be provided with a 10% discount on the tax due.
2. Value Added Taxation:
The penalty and interest on late payment of VAT is eliminated or reduced depending on the VAT periods ending. This is determined as follows:
a. For the VAT periods ending 28 February, 31 March, 30 April and 31 May 2013 no penalty or interest will be imposed on late payment of VAT by the taxable person.
b. For the VAT periods ending 30 June, 31 July, 31 August and 30 September 2013 reduced penalty at the rate of 5% will be imposed instead of the normal 10% penalty and no interest will be imposed.
The above changes apply provided that the taxable person will settle the VAT liability and submit properly the VAT declarations up to 10 December 2013.
Social Insurance Law:
A Certificate of employment should be issued by the employer for each employee which should be numbered starting with serial number 1. The blank certificates are issued by the Social Insurance department and should be obtained in original from the department by the employers.
The certificate is a three colored one and is distributed as follows:
White Copy: This should be submitted to the Social Insurance department until the end of the month from the date of commencement of employment of the employee.
Pink Copy: It is kept by the employer and archived in numerical order. It should present to the inspectors of the Social Insurance Department upon request.
Yellow Copy: It should be provided to the employee who is required to keep it and present it upon request by the inspectors of the Social Insurance Department.
The certificate of employment should be issued for each employee that has commenced employment on or after 17 February 2012. Failure to comply with the law will be subject to penalty of Eur 200 per employee.
This law was published in the Government Gazette in February 2012 but an unofficial grace period was provided for its implementation. We recommend the employers to comply with this law the sooner so as to avoid the possibility of imposition of penalty for non-compliance.
Please feel free to contact our office for more information on the above changes in the laws.