Insider Economy Retrospective taxation for community leaders

Retrospective taxation for community leaders

The Tax Department has put an end to exemptions provided to  community leaders in Cyprus over the past decades. In addition, they will now have to pay retrospective tax on income received from community services rendered, according to a circular signed by Tax Commissioner Yiannis Tsangaris.

This mean that all earnings by community leader, including benefits for secretarial services, representation and hospitality will now be subject to income tax.

The circular clearly says: “whereas Article 18 of the 2013 Budget Law provides that, irrespective of the provisions of any other law or regulation, the benefits of secretarial services, representation and hospitality are subject to income tax, circular 1997/10 shall apply until  fiscal year 2012.” At the same time, the circular indicates that “as from fiscal year 2013, compensation received by the mayors is subject to income tax in its entirety.”

The decision for benefits received by community leaders for services rendered to be taxed was decided back in November 1997. At that time, the Union of the Communities of Cyprus had submitted a list of expenses by community leaders while carrying out their duties. And following negotiations, it was decided that the percentage of expenses to be deducted from their compensations would be 50%.

This tax policy was in force up until fiscal tax year 1991. Community leader were not receiving benefits up until 1990, but were charging fees for each service rendered. In fact, the taxation process applied to community leaders who were not within municipal boundaries was the same as that for self-employed in Cyprus.

 

Read more:

https://in-cyprus.com/calls-for-taxation-of-multinational-companies/

Top Stories

379 booked in past 24 hours for breaking decree

Police booked 379 drivers and pedestrians in the past 24 hours for breaking a stay at home decree that allows people to leave the...

Police intensify Paphos restriction checks following violations

Police will be intensifying restriction violation checks in Paphos, as yesterday saw an increase in the number of people not adhering to the restriction...

Cypriot, UK FMs discuss issues concerning respective nationals amid coronavirus pandemic

Cyprus Foreign Minister Nikos Christodoulides had on Saturday evening a telephone conversation with his British counterpart, Dominic Raab, to discuss developments regarding the coronavirus...

Windy with possibility of showers, dust from this evening

Weak low pressure is affecting the area while there will be dust in the atmosphere from Sunday evening until Wednesday, the Met Office said. Today...

Army in the streets of Johannesburg

Members of the South African National Defence Force (SANDF) patrol the steets on the first day of a nationwide lockdown for 21 days to...

Taste

Village salad

A must-have with every meal is a village salad. You will find it in every tavern or greek restaurant you visit in Cyprus. Make...

Courgettes with eggs

Heat the oil in a frying pan and fry the courgettes at a medium heat until they soften. Add salt and add the eggs....

Classic Pastitsio

Prepare the mince sauce: heat the butter in a pan and sauté the mince with the onion and garlic until nicely browned, mixing well....

Grilled vegetable and goat cheese rolls

Brush the vegetables with olive oil and season. Heat a pan/griddle and cook them carefully until golden on both sides, making sure their shape...