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Tax Diary

 

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 Defence 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

September 30

Payment of Immovable Property Tax

I.R.301

I.R.302

7

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 by 3 months in case of electronic submission)

I.R.1

1,6

 

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 Contribution to the Defence Fund on rental income received during the second half of the current year

I.R.601

2

By the end of the next month

Payment of tax deducted from employees emoluments

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 employees 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 Inland Revenue Department. Similar rules apply in the case of companies incorporated outside Cyprus that become tax resident of Cyprus    I.R.162          9

Within 60 days period of such change

Notification of changes of companies 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

Issuance of Invoices within 30 days from the date the transaction was made, unless the taxable person requests in writing and receives such extension from the Commissioner           12

At the end of the financial period

Stock taking 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

 

 

 

Penalties

  1. 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 failure continues, or to imprisonment for a 
    term not exceeding 12 months, or both.
     Any person who without any excuse omits any object of the 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 4,5%* 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 defence tax withheld on rents, dividends and interest income, interest 
    accrues as of 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 Defence Tax which relates to rental period after 
    1.7.11, results in the imposition of a penalty equal to €100.
    3(a) A penalty is imposed equal to 10% of the difference between the tax due per the 
    final assessment and the tax per the temporary assessment, if the temporary 
    taxable income is less than 75% of the taxable income per the final assessment.
    3(b) If any instalment of the temporary tax assessment is not paid within 30 days from 
    the due date, interest at the rate of 4,5%* per annum is imposed. In addition, in 
    case 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 4,5%* per 
    annum (interest is calculated on the basis of completed months).
     An additional tax of 5% is imposed in the case where the due tax (as this is 
    declared on the tax return) is not paid within 30 days from the date the tax return 
    is due for filing. No penalty is imposed where the tax return is submitted timely, 
    the tax due based on the Tax Return is timely paid and the Inland Revenue 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 due tax by the due payment date is 
    liable to 5% penalty on the due tax.
    5. Late payment results in the imposition of interest at 4,5%* per annum from the 
    due date and an additional penalty of 1% per month for as long as the delay 
    continues (interest is 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 office and this is not 
    submitted within the requested period, then a penalty of €200 is imposed for 
    every notice issued.
    7. Interest is imposed at the rate of 4,5%* per annum from the due date.
     Any person omitting to pay the due tax by the due payment date is liable to 5% 
    penalty on the due tax.
    8. Late payment results in the imposition of a penalty of 3% for each month of delay 
    as long as the delay continues. The total amount of the penalty cannot exceed 27% 
    the amount due.
    9. Late registration with the Inland Revenue Department results in the imposition of a 
    penalty equal to €100.
    10. Late communication of changes to the Inland Revenue 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. No stock taking results in the imposition of a penalty equal to €100.
    14. Late submission of information requested by the Inland Revenue Department, 
    results in the imposition of a penalty equal to €200.

    *The official rate set by the Minister of Finance applicable as of 1.1.14 is 4,5% (4,75% for 2013, 5% for 2011-2012; 5,35% for 2010; 8% for 2007-2009; previously 9%)

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