An end to Stopaj (capital gains) tax? Elko?

jbarnett


Joined: 05/04/2008
Posts: 108

Message Posted:
01/06/2009 13:36

Hi All,

I noticed a small paragraph on page 7 of Saturday's Cyprus Today stating that the Cyprus Turkish chamber of commerce are trying to get the government to cancel Stopaj Tax. It goes onto say that the government have already set out plans to scrap Stopaj, reduce VAT and road tax in it's 5 year plan.

Does anyone know if this relates to Stopaj/VAT on property sales or other parts of the economy?

Thank you in advance

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
01/06/2009 16:42

No it does not. This is the 4% Stopaj at Customs i.e. The importer pays 4% tax in advance and at the end of the year it is deducted from his income tax liability. In practice all the importers (with the exception of Elko) pass on this 4% to the customers as if it is an additional tax but at the end of the year they claim that they have already paid their income tax and perhaps top it up with a few cents!!!.



Many years ago it was 5%, then it was abolished and then during the CTP rule we had it back this time as 4%. They are talking about abolishing this 4% "income tax in advance".

ismet

jbarnett


Joined: 05/04/2008
Posts: 108

Message Posted:
01/06/2009 20:36

Many Thanks for clarifying this for me Ismet !