On 25 October 2012, the House of Representatives voted an amending proposal to further extend the Law providing for the Special Settlement of Tax Liabilities which covers years up to 2008.

The original Law provides for the imposition of a flat penalty of 5% on taxes due for tax years up to and including 2008 and any penalties or interest on these taxes are waived.

The amending proposal voted which is valid from 1 November 2012, extends these special relieving provisions to apply until the 31 December 2013.

For each month of delay in settlement of the relevant taxes due from 1  November 2012 the penalty will be increased by 1% and will reach 6% on the initial tax balance.

Each month an extra 1% penalty will be imposed with a maximum of 9%.

From 1 April 2013 the tax payers are given the right to pay the relavant taxes by installments.

The provision for the additional charge also applies in this case.

For more information please contact our tax department.