Following the amendments of the above law, as publicised in the official government gazette on 18 November 2022, the levy of 0.4% which is imposed on the sale of immovable property as from 22 February 2021 when the original law was enacted, will be assessed and collected as follows:
- The said levy is charged on the sale of immovable property, as this is defined in the Immovable Property (Tenure, Registration and Valuation) Law Cap.224,
- on the sale of shares of a company (that is not listed on a recognised Stock Exchange), that directly or indirectly holds immovable property, for which a general assessment value has been determined by the Department of Land and Surveys, with this levy being imposed on the last assessed value by the above Department, corresponding to the company shares that will be transferred by virtue of a sale.
NO SUCH LEVY will be imposed in the cases of a restructuring of a non-performing loan as defined in the Capital Gains Tax Law, a company reorganisation as defined in the Income Tax Law and a sale submitted to the Department of Land and Surveys or the Cyprus Registrar of Companies with a date of sale prior to 22 February 2021.
The responsibility of the assessement and collection of the above levy, lies with the Tax Commissioner, with the latter being entitled to take any legal action in order to collect any amount due as a civil debt.
However, the Tax Department, via an announcement issued on 21 November 2022, emphasizes that for cases concerning the period from 22/02/2021 until 18/11/2022, the Tax Commissioner intends to grant a reasonable time period for the settlement of the relevant obligation WITHOUT the imposition of interest and penalty charges. A related announcement will be issued at a later date and hence the public is urged NOT to rush to the Tax Department to arrange the settlement of obligations arising within the above mentioned period (22/02/2021 – 18/11/2022).