Cyprus tax revenue declines 11% in Jan-May 2009

The Cyprus Inland Revenue Department (IRD) reported that tax revenue for the period January – May 2009 declined by 11% YoY to EUR 582.19 mln from EUR 651.58 mln in the same period in 2008.
The decline was mainly to the significant decline in revenue from Capital Gains Tax which slumped by 81% to EUR 26.9 mln from EUR 144.38 mln before on the back of the decline in demand in the property market. During the first five months of the year, property sale contracts announced by the Land Registry Department were also down by 60.7% supporting the decline in property market related revenues.
On the bright side, income tax from employees and corporation tax increased by 20.0% and 15% respectively to EUR 198.65 and EUR 115.19 mln.