Cyprus Collected 30% More In Tax In Q1, 2006

by Lorys Charalambous, Tax-News.com, Cyprus

26 May 2006

The Cypriot Inland Revenue Department has reported that taxes collected in the first quarter of 2006 have increased by more than 30%, thanks in part to a substantial year-on-year gain in capital gains tax receipts.

According to the latest figures from the department, a total of CYP164.3 million (EUR285.5 million) was collected in the first three months of 2006, CYP38.7 million, or 31% more than in the same period last year.

Capital Gains Tax recorded the highest year-on-year increase of all major tax categories as receipts increased by 113% to CYP 20.4 million.

Other notable increases in tax revenues came from the Special Defense Levy, which drew in 50% more revenues in the first quarter of 2006 compared to Q1 2005 at CYP35.4 million. Stamp Duty payments increased by 41% year-on-year to just over CYP6 million, while personal income tax receipts from employees rose by CYP8.8 million, or 21%, to CYP50.4 million.

There was also a 19% year-on-year rise in the amount of revenues from penalties, which drew in CYP5.3 million in the first quarter of 2006.

However, there was a fall in corporate tax receipts over the year by CYP2.6 million, or 9%, with CYP22.6 million in tax collected from companies in the first three months of this year.

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