The Law Providing for Special Tax Settlement of Debts 2011

We would like to bring to your attention the recent changes in the law, as voted by the Cypriot Parliament on the 24th November 2011.

The new Law outlines that penalties and interest amounting to greater than 5% on the total tax liability, for all years up to and including the year ended the 31st December 2008 will be written off.

As a result, this will mean that tax payers (both individuals and companies) must pay the tax due for these years to the Inland Revenue Department together with a 5% penalty.

The Government’s objective is to collect all unpaid taxes for the referred to period.

This Law will be effective from the date that it is published in the Cyprus Government Gazette until the 30 March 2012.

Further clarifications for the matter can be given by members of Fidelico team.