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Improvement in Cyprus direct tax revenues

ALTHOUGH overall direct tax collections for the first nine months of the year are down by more than 15%, there are some signs that the government has managed to halt the decline or at least  has managed to slow it down.

The amount of Immovable Property Tax collected during September alone was €5.7 million; more than 1.7 times the €3.4 million collected during the preceding eight months of the year

The collection of other property related taxes, Capital Gains Tax and Stamp Duty, has also improved compared to last month’s figures, but only marginally.

Cyprus Inland Revenue Department collections January – September 2008/2009
Cyprus Inland Revenue Department collections January – September 2008/2009

In total, the Inland Revenue Department has collected €231 million less in direct taxes during the first nine months of this year compared to last.

Virtually all of the shortfall can be attributed to the collapse of the property market, with Capital Gains Tax receipts down by more than €211 million compared to last year.

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