The Cyprus government has announced its intention to improve the
liquidity of the national financial system by introducing a tax
amnesty encouraging taxpayers to repatriate funds hidden
overseas.
Although no details have been announced the government has
indicated that if previously undeclared funds hidden abroad are
repatriated and deposited with a national bank for a period of at
least five years or are used to purchase Cyprus government bonds,
any income taxes owed in respect of the repatriated funds will be
waived.
The government intends to put the draft law before the House of
Representatives by early August and, if it is approved, for the
amnesty to take effect immediately and last until the end of
2013.
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