IPC

[samcat]

I called at the Inland Rev. Offices today at Paphos and was refused 10% discount for early payment of the minimum fee for IPC. My wife and I each have to pay 75 euros. Seems grossly unfair. I was told that the 10% penalty for not paying on time will now be extended until November. Has anyone else been told this? The lady in room 001 told me she had read it in her paper! I got the general impression that nobody really knew what was going on. Did I pay? No. Give them time they might change their mind again.

[Nigel Howarth]

Hi samcat and welcome to the forum.

I can understand the logic behind this. €75 is the minimum - so if your IPT worked out at €80, you would be asked to pay the minimum - €75.

I'll see if there has been an extension to when the penalty kicks in to the 30th November and report back if I find anything.

Regards,

[samcat]

Hi Simon, I see in todays edition of 'Cyprus Daily' that 'A draft bill for extending the payment period for IPC to November 15 will be put before the cabinet in the next few weeks'. It goes on to say that this is to allow time for letters to be printed, put into envelopes and mailed.
Thanks for your interest 'Samcat'

Hi samcat and welcome to the forum.

I can understand the logic behind this. €75 is the minimum - so if your IPT worked out at €80, you would be asked to pay the minimum - €75.

I'll see if there has been an extension to when the penalty kicks in to the 30th November and report back if I find anything.

Regards,

[Nigel Howarth]

A draft bill for extending the payment period for IPC to November 15 will be put before the cabinet in the next few weeks'. It goes on to say that this is to allow time for letters to be printed, put into envelopes and mailed.

That sounds like a good idea. When I spoke with the land tax manager in Limassol he said that the intention was to send tax demands - but there was very little time. Also, with more than 300,000 new IPT payers, the posties' bags are going to be rather full!

I'll keep an eye on the Government Gazette for any changes in the law.

Regards,

[Nigel Howarth]

From the Cyprus Daily:

A draft bill to extend the payment period for property tax to November 15 will be put before the Cabinet in the next few weeks but the tax brackets will not change.

According to reports, the extension of the time period from September 30 to November 15 was necessary in order for the appropriate department to print, file and send property owners the owed tax amounts.

The time needed for printing the letters is estimated to be approximately two and a half months, not including placing them in envelopes and mailing.

Reports claim that the government is in no position to change the new tax brackets that were passed in the plenary a few months ago, as it was not possible to gather the necessary information from property owners whose property value exceeds the value listed on the land registry’s records.

Meanwhile, president Anastasiades has requested that the information be re-assessed as gaps had been found in the taxing of property which had been developed and gained greater value but was presented at the land registry office as simple plots.

Based on recent legislation, the government expects to receive €100m of the estimated €130m in taxation of property following deductions that will be made as part of its Troika commitments.

More specifically, property estimated between €0 and €40.000 based on prices in 1980 will be taxed at 0.6%. Property worth between €40.001 and €120.000 will be taxed at 0.8% and for property worth between €120.001 and €170.000 the tax will come to 0.9%
Property ranging from €170.001 to €300.000 will be taxed at 1.1%, property worth €300.001 to 500.000 at 1.3% and for property worth between €500.001 and €800.000 tax will come to 1.5%. Finally, any property that is worth between €800.001 and €3m will be taxed at 1.7% and for anything above €3m tax will come to 1.9%.

Rgds,