CORPORATE & COMMERCIAL

Amendments to the Procedure for Affixing Stamp Duties on Agreements, Effective from 27.07.20 Onwards

The Tax Department has recently announced amendments on stamp duties on any Agreements between two legal entities, Real Estate Lease Agreements, Employment Agreements and Contracts with a specific contract value, such as Sale-Purchase Agreements, Loan Agreements etc., effective as from 27.07.20.

The new procedure applies strictly to the initial agreement and not to any addendum or additional agreements, and it provides that the person, who wishes to have an agreement stamped, shall follow a prescribed procedure, which the Tax Department has recently published online and described below.

The new procedure

The Tax Department has published in their website a manual in excel format, which provides information on the accurate calculation of the required stamp duties. This manual can also be found at the following link:

https://www.mof.gov.cy/mof/tax/taxdep.nsf/All/F1ACCBC32EEA7980C22585BD0038D6A0?OpenDocument

Stamp duties not exceeding €100

The stamp duty is payable within 30 days from the day of signing of a document.

Interested parties shall:

  1. Calculate the stamp duties payable according to the above-mentioned manual.
  2. Send to the Tax Department, via email, the relevant ‘Calculation of Stamp duties’ form.
  3. Purchase the stamp duties from approved representatives (who are listed on the Tax Department’s site).
  4. Affix and cancel the stamp duties with the same procedure that applies to fixed stamp duties – further information can be found on the Tax Department’s website.

Stamp duties exceeding €100

Interested parties shall:

  1. Calculate the stamp duties payable according to the relevant manual published by the Tax Department.
  2. Print out the relevant ‘Calculation of Stamp duties’ form and submit it to the authorities for the payment of stamp duties.
  3. Present before the authorities the receipt of payment together with the agreement/document upon which the stamp duties will be affixed, so that they are cancelled.

The content of this article is intended to provide a general guide to the subject matter and does not constitute legal advice.

For any additional information, please contact us at [email protected] or +357 22 42 11 90.