Tax Alert Immovable Property Tax

Transcription

1 Tax Alert Tax Tax Changes in tax bands Reduction in tax free allowance and increase in tax rates Page 1 out of 8

2 Tax General Provisions The registered owner (legal or individual person) of the immovable property situated in the Republic, is subject to Tax on an annual basis, calculated on the market value of the immovable property, at values of 1/1/1980. Page 2 out of 8

3 Tax Owners Liability Payment of Tax Every registered owner must submit to the Director, returns showing the property owned as at 1 st of January in values of 1/1/1980, through the forms ''Statement of (E.Pr.301)'' and '' Information (E.Pr.302)''. Also he has the obligation to pay the relevant tax until 30 th of September of that year. Supplementary Statement of (Form E.Pr.303) If during the particular year there has been any changes in the immovable property (i.e. acquisitions, additions, disposals), the owner is obliged to prepare and submit the Supplementary Statement of (E.Pr.303) based on values of 1/1/1980, before the 30 th of September of the following year. If at that time there is no available official estimation by the land registry office, then an assessment on the value should be done by the owner (i.e. by appointing an independent certified valuer). Page 3 out of 8

4 Tax (decrease of the tax free allowance and increase of the tax rates) Tax rates applicable for the year 2011 Tax rates applicable for the year 2012 Values at 1/1/ ,00% ,25% ,35% and over 0,40% Values at 1/1/ ,0% ,4% ,5% ,6% ,7% and over 0,8% Page 4 out of 8

5 Tax Valuation of the and the Powers of the Director Where the estimated value of the immovable property of the Director differs from the value declared on the relevant forms submitted by the owner, the Director has the right to revise the value of the immovable property at any time within two years from the date which the tax became payable and notify the registered owner. Where no return of immovable property has been submitted or they have not properly been completed within the time-limit as specified by the law, the Director has the right at any time to estimate the value of the immovable property and notify the registered owner. Page 5 out of 8

6 Tax Tax consequences in cases of a low estimation and overpayment Where the estimate of the owner on the value of the immovable property is less than 75% of the final assessment of the Director, then an additional 10% tax is imposed on the difference between the final tax payable and the amount of tax paid according to the owner s return. In the event of an overpayment due to higher valuation by the owner, for the excess to be refunded by the Income Tax Office, all payments of tax should be accompanied by a letter stating that such payments are made with reservation, pending the official valuation of the land registry office. Page 6 out of 8

7 Tax Exemption from immovable property tax is granted to: buildings of religious significance (such as churches) public cemeteries schools public hospitals immovable property belonging to foreign embassies, consulates, or the Republic An exemption is also granted: on immovable property used by farmers for agricultural purposes premises used by charitable institutions preserved buildings immovable property situated in areas inaccessible due to the Turkish invasion. Page 7 out of 8

8 Contact us For more information and advice please contact with our nearest office: Nicosia George Karavis Agiou Nicolaou Nimeli Court Block C 2408 Engomi, Nicosia P.O Box 23907, 1687 Nicosia Cyprus T F E george.karavis@cy.gt.com Limassol Augoustinos Papathomas 10 Filiou Zannetou 3021 Limassol P.O. Box 55299, 3820 Limassol Cyprus T F E august. papathomas@cy.gt.com 2012 All rights reserved. Grant Thornton (Cyprus) Ltd is a member firm of Grant Thornton International Ltd (Grant Thornton International). References to Grant Thornton are to Grant Thornton International or its member firms. Grant Thornton International and the member firms are not a worldwide partnership. Services are delivered independently by the member firms. Page 8 out of 8