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Changes to Stamp Duty with effect from 1st March 2013
Saturday, April 13, 2013
 

 

The Stamp Duty Law of 1963 to 2007 was recently amended by the Cyprus.

 

With effect from 1 March 2013 the rates of stamp duty are as follows:

 

1.       For transactions with a consideration up to €5,000 no stamp duty is payable;

2.       For transactions with a consideration in excess of €5,000 but not exceeding €170,000, stamp duty of €1.50 for every €1,000 or part thereof is payable;

3.       For transactions with a consideration in excess of €170,000 stamp duty of €2.00 for every €1,000 or part thereof is payable.

4.       The maximum stamp duty payable on a contract will be capped at €20,000.

 

The wording of the law indicates that the rate of stamp duty is determined by the aggregate value of the contract and applies to the entire consideration, whereas previously the appropriate rate was applied to each tranche of the consideration. Our discussions with the relevant authorities indicate that they intend to continue to apply the old method of calculation in practice. In any event, the difference is less than €300.

 

Where no amount of consideration is specified in the contract the stamp duty is €34.

 

For a transaction which is evidenced by several documents stamp duty is payable on the main contract and ancillary documents are charged at a flat rate of €2.

 

A number of categories of documents are exempt from stamp duty, including documents relating to corporate reorganisations (which are exempt from all forms of taxation) and ship mortgage deeds or other security documents.

 

Stamp duty must be paid within 30 days from the date of execution of the relevant documents or, if they are executed abroad, within 30 days after they are received in Cyprus. If stamp duty is paid late, a surcharge of approximately 10 percent of the unpaid amount is payable if payment is made within six months after the due date; otherwise the surcharge is twice the unpaid amount.

 

Should you require more information regarding the above please to do not hesitate to contact us at: info@istosglobal.comor +357 22 256324.


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