Cyprus Tax news

The mandatory submission of the tax return to the tax department

The submission of the tax return to the tax department regardless of the amount of income becomes mandatory from the year 2020 for each person

 

Deadlines for submitting income tax returns

The income tax return is submitted no later than July 31 of the year following the tax year.

For persons who are required to keep books and records and prepare accounts, the deadline for submitting the tax return is March 31 of the year following the tax year.

 

The requirement from any natural person to submit a statement of assets and liabilities of personal and professional property

The tax department with a written notice may require any natural person to submit a statement for the period specified in the notice, with full details of the assets and liabilities of personal and professional property within and outside the Republic, of this and any of its dependents, and his or her spouse. The capital statement can be requested for a period of only six (6) years unless it can be considered that there is tax fraud

 

Submitting a revised income tax return

Any person who has filed an income tax return with the tax department may file a revised tax return for any tax year within three (3) years from the deadline for filing the tax return for that tax year. If additional tax arises, it must be paid within thirty days from the date of submission.

 

Change in the deadline for submitting the employer declaration – declaration of income of employees to the tax department.

The deadline for submitting an employer declaration – declaration of income of employees to the tax department is the day before the last calendar day in February of the following year. However, the extension deadline remains by three (3) calendar months since the submission of the declaration is now only electronically. Therefore, it must be submitted electronically before the last calendar day of May.

 

The tax department is possible to carry out a tax audit at any reasonable time

The Cyprus tax department is possible to carry out a tax audit at any reasonable time, without any warning.

 

Businesses have an obligation to accept card payment from consumers.

Persons engaged in economic activity are obliged to accept payment by card from consumers. These persons will be mentioned in the Decree that is expected to be issued.

 

Restriction on tax refund by the tax department.

No amount of income tax is refunded by the tax department to a taxpayer who has failed to submit all required tax returns

 

Payment of the tax from the tax year 2020 and for the following years

In the case of a person whose last tax filing date is July 31 of the year following the tax year, the tax payment date is July 31 of the year following the tax year, and when the tax filing date is the 31st of March of the year following the tax year, the tax payment date is the 1st of August of the year following the tax year.

 

Non-compliance with the various procedures and related consequences

1. Various procedures should be followed, including the charges that result from non-compliance with the obligations of companies in relation to the acceptance of a card as a means of payment.
2. After the issuance of the Decree, the appropriate controls will follow to verify the application of the relevant provisions. Where a violation is found by the company, the tax official is obliged within five (5) working days from the date of finding the violation to submit the relevant report to the Cyprus commissioner of income tax and the decision to impose a fine is issued within fifteen (15) working days from submission of the relevant report. The Cyprus commissioner of income tax may impose an administrative fine of up to two thousand (2,000) euros.
3. In case of refusal or omission of a person who has been imposed an administrative fine, the Cyprus commissioner of income tax takes legal action and collects the amount due as civil debt due to the Republic of Cyprus.
4. The decision to impose an administrative fine is subject to an objection to the Cyprus commissioner of income tax within thirty (30) days from its notification. The decision on the objection is issued within the deadline
5. The decision on the objection is subject to appeal before the Administrative Court and the Cyprus Commissioner of income tax returns any administrative fine paid to the person who paid it in case his objection to the commissioner of income tax or his appeal to the Administrative Court is accepted.
6. The amount of the imposed administrative fine is reduced in half if within thirty (30) days if:
   1. the fine is paid
   2. submit to the Cyprus commissioner of income tax an invoice proving the purchase of a payment terminal for accepting payment cards and means of payment by card.

 

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