On 23 July 2021, the Cyprus official gazette published a decree containing details of the extension to the scheme of settlement for overdue taxes providing partial relief from interest and penalties to the tax years 2016 through 2019. The relief measures were announced on 29 April 2021 in the amendment to the Law Regulating the Settlement of Overdue Taxes.
The deadline for the submission of applications for relief from interest and penalties is 29 April 2022 (within 12 months from the date of entry into force of the amending law). The scheme covers the overdue taxes that have been experienced by a taxpayer as result of decreasing their annual turnover by at least 25% in 2020 compared to 2019, due to business disruption caused by COVID–19 are eligible for the relief scheme.
The percentage of interest and penalties deducted on overdue taxes depends on the number of installments in which the tax is paid, up to a maximum of 60.
