Tax Calendar

                      

CYPRUS TAX CALENDAR 2017

Date

Obligation

Form

Penalties

January 31

Submission of deemed dividend  distribution form

I.R.623

6, 7

 

April 30

Submission of Income  Tax Return by Individuals (deadline extended by 3 months in case of electronic submission)

 

I.R.1

 

1, 6

Submission of Employer’s Return (electronic submission)

I.R.7

6

 

 

 

June 30

Submission  of Income  Tax Return by individuals who do not submit audited accounts but are  obligated to issue  invoices, receipts, etc. (deadline extended by 3 months in case of electronic submission)

 

I.R.1

 

1, 6

Payment of tax balance for the previous year  by individuals who do not submit audited accounts but are obligated to issue invoices, receipts, etc.

 

-

 

4

Payment of Contribution to the  Defense Fund on rental income received during the first half of the current year

 

I.R.601

 

2

 

July 31

Submission of Temporary Tax Assessment for the current year

I.R.6

3(a)

Payment  of first installment of tax based on the Temporary Tax Assessment

-

3(b)

August 1

Payment of the  tax balance for the  previous year

I.R.158

4

 

 

December 31

Submission of Company Income  Tax Return (deadline extended by 3 months in case of electronic submission)

 

I.R.4

 

1, 6

Submission of Tax Return, accounts and additional information by individuals who submit audited accounts (deadline extended by3 months in case of electronic submission)

 

I.R.1

 

1, 6

 

 

December 31

Submission of revised Temporary Tax Assessment for the  current year, if considered necessary

 

I.R.6

 

3(a)

Payment of second instalment of tax based on the Temporary Tax Assessment

-

3(b)

Payment of Special  Contribution to the  Defense Fund on rental income received during  the  second half of the  current year

 

I.R.601

 

2

 

End of each month

Payment of tax and special contribution withheld from the employees’ salaries during the previous month

I.R.61

5

Payment of Contribution to the  Defence Fund withheld from dividends, interest and rents

I.R.601

2

Payment of Social Insurance deducted from employee emoluments

Y.K.A.

2-002

8

Within 30 days

Payment of Capital Gains Tax

-

7

 

 

Within 60 days

Obtaining a Tax Identification Code: Following the registration or incorporation of a company with the Registrar of Companies, the company is obliged to submit an application for registration with the Tax Department. Similar rules  apply in the case of companies incorporated outside Cyprus  that become tax residents of Cyprus

 

 

I.R.162

 

 

9

Within 60 days  of such  a change

Notification of changes of company details (i.e. registered office, activities, auditors, etc.)

 

I.R.162

 

10

Four months from the  month of the transaction

Updating of books  and records by businesses which are  obliged  to keep  accounting books

 

-

 

11

Within 30 days

Unless the  taxable person requests an extension in writing and receives the  extension from the Commissioner

 

-

 

12

At the  end of the financial period

Stocktaking must be conducted annually by businesses which have  inventory

 

-

 

13

Within the timeframe specified by the  tax authorities

 

Submission of information requested in writing by the tax authorities

 

-

 

14

 

1.   Upon conviction for failure to submit a return, a person shall be liable to a fine not exceeding €17 per day for as long as the failure continues, or to imprisonment for a term not exceeding 12 months, or both.

Any person who omits any  object of tax from  the return shall  be liable, on conviction, to a fine up to €3.417 plus the tax due, plus an amount equal  to two times the difference between the amount of tax properly imposed and  the amount of tax that would  have been imposed had  the assessment been based on the return.

2.   For rental income, interest at the rate of 3,5%* per annum is imposed from  the first day  after the end  of the six-month period (interest is calculated on a daily basis). ln case of Special Contribution to the Defence Fund  withheld on rents, dividends and interest begins to accrue at the end  of the month which  follows  the month to which it relates (interest is calculated on a daily basis). In addition, in case of delay in payment, a flat 5% penalty on the tax due is payable.

Late payment of outstanding Special Contribution to the Defence Fund which relates to the rental period after 1.7.11 results in the imposition of a penalty equal to €100.

3(a) A penalty of 10% is imposed on the difference between the tax due per the final assessment and the tax due per the temporary assessment, if the temporary taxable income per temporary assessment is less than 75% of the taxable income per the final assessment.

3(b) If any  installment of the temporary tax assessment is not paid  within  30 days from the due date, interest at the rate of 3,5%* per annum is imposed. In addition, in case of a delay in payment, a flat 5% penalty on the tax due is  payable.

4.   If the tax is not paid by the due date, interest is imposed at the rate of 3,5%* per annum (interest is calculated on the basis of completed months).

An additional tax of 5% is imposed in cases where the tax due (as declared on the tax return) is not paid within 30 days of the date the tax return is due for filing. No penalty is imposed where the tax return is submitted on time, the tax due  based on the tax return is paid  on time and  the Tax Department makes an assessment after the lapse of three years from  the date of submission as prescribed by the law.

In addition, any person omitting to pay the tax due  by the payment due  date is liable  to a 5% penalty on the tax due.

5.   Late payment results in the imposition of interest at 3,5%* per annum from  the due date and an additional penalty of 1% per month calculated on the basis of completed months.

6.     Late submission results in the imposition of a penalty equal to €100. If the tax return for a specific year is requested in writing by the Tax Department and this is not submitted within the requested period, a penalty of €200 is imposed for every notice issued.

7.     Interest is imposed at the rate of 3,5%* per annum from  the due date. Any person omitting to pay the due tax by the due payment date is liable  to a 5% penalty on the tax due.

8.   Late payment results in the imposition of a penalty of 3% for each month of delay. The total amount of the penalty cannot exceed 27% of the amount due.

9.     Late registration with the Tax Department results in the imposition of a penalty equal to €100.

10.   Late communication of changes to the Tax Department results in the imposition of a penalty equal to €100. The penalty is applicable on each change not communicated.

11.   Late update of the books and records results in the imposition of a penalty equal to €100 (on a quarterly basis).

12.   Late issuance of invoices results in the imposition of a penalty equal to €100. The penalty is imposed on a monthly basis irrespective of the number of invoices failed to be issued within a specific month.

13.   Failing to perform stock-taking, results in the imposition of a penalty equal to €100.

14.   Late submission of information requested by the Tax Department results in the imposition of a penalty equal to €200.

*The official rate set by the Minister of Finance applicable as of 1.1.17 is 3,5% (4% for 2015-2016, 4.5% for 2014; 4,75% for 2013; 5% for 2011-2012; 5,35% for 2010; 8% for 2007-2009; previously 9%).