TAX DIARY – Main Obligations and Deadlines
In this tax newsletter we outline the main obligations and deadlines deriving from the direct taxes legislation in Cyprus.
It is of great importance to adhere to all obligations and within the prescribed deadlines as non-compliance can result in substantial financial penalties/fines and/or offences/legal action.
Please note that the newsletter does not cover the obligations and deadlines under the VAT legislation. If you are looking for the VAT Diary of 2019 please click the picture below.
| Deadline | Tax Obligation | Tax Form | Penalties |
| End of each month |
Payment of PAYE deducted from employees’ salaries for the previous month | TD61 | There is an interest of 2%* per annum imposed from the due date and an additional penalty of 1% per month calculated on the basis of completed months.
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| Payment of special contribution for defence withheld on dividends, interest or rent** paid in the previous month to Cyprus tax residents
**Where the tenant is a Cyprus company, partnership, the Government or a local authority there is an obligation to withhold special contribution for the defence on the amount of the rent paid |
TD601
TD614 |
Interest penalty for Special Defence Contribution withheld on rents, dividends and interest begins to accrue at the end of the month which follows the month to which it relates, calculated on a daily basis. An additional flat 5% penalty is imposed on the tax due.
There is a penalty of €100 imposed on late payment of outstanding Special Defence Contribution which relates to the rental period after 1/7/11. |
|
| Payment of Social Insurance and General Healthcare System (ΓΕΣΥ)** Contributions deducted from employees’ salaries for the previous month
**Due from 1/3/2019 |
Υ.Κ.Α. 2-002 | There is a penalty of 3% for each month of delayed payment. The total amount of the penalty cannot exceed 27% of the amount due. | |
| 31 January | Submission of the deemed dividend distribution declaration and payment of special defence contribution | TD623 | There is a penalty equal to €100 imposed on late submission. In case the Tax Department requests in writing the tax return of a specific year and this is not submitted within the requested period, there is a penalty of €200 imposed for every notice issued.
There is an interest of 2%* per annum imposed from the due date. There is an additional 5% penalty on the tax due, for any person omitting to pay the tax due by the due date.
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| 31 March | Electronic submission of the Income Tax return for Companies | TD4 | There is a penalty equal to €100 imposed on late submission. In case the Tax Department requests in writing the tax return of a specific year and this is not submitted within the requested period, there is a penalty of €200 imposed for every notice issued.
In case any information is omitted from the tax return, a liability arises on conviction of a fine up to €3.417 plus the tax due. |
| Electronic submission of the Income Tax return for Individuals preparing audited financial statements | TD1 | There is a penalty equal to €100 imposed on late submission. In case the Tax Department requests in writing the tax return of a specific year and this is not submitted within the requested period, there is a penalty of €200 imposed for every notice issued.
In case any information is omitted from the tax return, a liability arises on conviction of a fine up to €3.417 plus the tax due. |
|
| 30 June | Payment of Annual Levy of €350 | – | There is a penalty charge of 10% imposed if the payment is made within 2 months of the due date. In the case of settling the fee within 5 months from the due date, an additional charge of 30% is imposed.
In the case the payment is due for more than one year, the Registrar of Companies has the right to strike off the company.
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| Payment of special contribution for defence on rents**, dividends or interest from sources outside of the Republic for the first 6 months of the current tax year
**Also valid for rents received within the Republic |
TD601 | For rental income, there is an interest of 2%* per annum calculated on a daily basis that is imposed from the first day after the end of the six-month period.
Interest penalty for Special Defence Contribution withheld on rents, dividends and interest begins to accrue at the end of the month which follows the month to which it relates, calculated on a daily basis. An additional flat 5% penalty is imposed on the tax due. There is a penalty of €100 imposed on late payment of outstanding Special Defence Contribution which relates to the rental period after 1/7/11. |
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| Payment of tax balance for the previous tax year through self assessment by Individuals who don’t prepare audited Financial Statements | TD158 | There is an interest imposed of 2%* per annum calculated on the basis of completed months. | |
| 31 July | Electronic submission of the Employers’ return for the previous tax year | TD7 | There is a penalty equal to €100 imposed on late submission. In case the Tax Department requests in writing the tax return of a specific year and this is not submitted within the requested period, there is a penalty of €200 imposed for every notice issued.
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| Electronic submission of the personal Income tax return by salaried Individuals | TD1 | There is a penalty equal to €100 imposed on late submission. In case the Tax Department requests in writing the tax return of a specific year and this is not submitted within the requested period, there is a penalty of €200 imposed for every notice issued.
In case any information is omitted from the tax return, a liability arises on conviction of a fine up to €3.417 plus the tax due. |
|
| Submission of the Provisional tax return for the current tax year and payment of the first provisional tax instalment | TD5
TD6 |
There is a penalty of 10% payable on the difference between the tax due per the final assessment and the tax due per the temporary assessment, in case the temporary taxable income per temporary assessment is less than 75% of the taxable income per the final assessment.
In case an instalment of the temporary tax assessment is not paid within 30 days from the due date, there is an interest rate of 2%* per annum imposed. |
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| 01 August | Payment of the tax balance of the previous tax year through self-assessment by Individuals and Companies preparing audited financial statements | TD158 | There is an interest of 2%* per annum, calculated on the basis of completed months. |
| 30 September | Electronic submission of the Personal Income tax return by Individuals / sole-traders who do not prepare audited Financial Statements (i.e. their gross income is between €19.500 and €70.000) | TD1 | There is a penalty equal to €100 imposed on late submission. In case the Tax Department requests in writing the tax return of a specific year and this is not submitted within the requested period, there is a penalty of €200 imposed for every notice issued.
In case any information is omitted from the tax return, a liability arises on conviction of a fine up to €3.417 plus the tax due. |
| 31 December | Submission of the revised Provisional tax return for the current tax year (if applicable) and payment of the second provisional tax instalment | TD5 TD6 |
There is a penalty of 10% payable on the difference between the tax due per the final assessment and the tax due per the temporary assessment, in case the temporary taxable income per temporary assessment is less than 75% of the taxable income per the final assessment.
In case an instalment of the temporary tax assessment is not paid within 30 days from the due date, there is an interest rate of 2%* per annum imposed.
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| Payment of special contribution for defence on rents**, dividends or interest from sources outside of Cyprus for the last 6 months of the current tax year
**Also valid for rents received within the Republic |
TD601 | For rental income, there is an interest of 2%* per annum calculated on a daily basis that is imposed from the first day after the end of the six-month period.
Interest penalty for Special Defence Contribution withheld on rents, dividends and interest begins to accrue at the end of the month which follows the month to which it relates, calculated on a daily basis. An additional flat 5% penalty is imposed on the tax due. There is a penalty of €100 imposed on late payment of outstanding Special Defence Contribution which relates to the rental period after 1/7/11. |
* The official rate set by the Minister of Finance applicable as of 1/1/19 is 2% (3,5% for 2017-2018; 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%).