Cyprus tax department penalties and interest

  • Late payment to the Social Insurance Department 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
  • An administrative penalty of €100 is imposed for late submissions, registrations, and communicating changes by the Cyprus tax department. An administrative penalty of up to €200 (depending on the specific case) is imposed for late submission of either a tax return or supporting documentation requested by the Tax Department.
  • Late payment of tax due to the Cyprus tax department, a penalty of 5% is imposed on the tax amount due to the Cyprus tax department. An additional penalty of 5% is imposed if the tax remains unpaid 2 months after the payment deadline.
  • Late PAYE payment of tax due to the Cyprus tax department, a penalty of 1% per month calculated on the basis of completed months due to the Cyprus tax department
  • In case of conviction for non-filing, a person is subject to a fine not exceeding €17 per day for as long as the non-filing continues, or to imprisonment for a period not exceeding 12 months or both. Any person who omits any object of tax will be subject to a fine of up to € 3,417 plus the tax due, plus an amount equal to twice the difference between the amount of tax properly imposed
  • The public interest rate applicable on late payment of taxes, as set by the Cyprus Tax Department, for all amounts due for the years on all completed months.
Year Interest
Μέχρι 31/12/2006
1/1/2007 -31/12/2009
1/1/2020 -31/12/2022
1/1/2023 – 31/12/2023
1/1/2024 – Today

Important notes:

  • All individuals who have gross income that falls under Article 5 of the Income Tax Law are obliged to submit a tax return. The Council of Ministers has the power to issue decrees which shall specify the categories of taxpayers with a total annual gross income below the taxable threshold of €19.500 that will be exempted from this obligation and may provide extensions to the submission deadline.
  • From tax year 2018 onwards, a revised tax return can be submitted within three years from the submission deadline of the relevant tax return. In exceptional cases, overdue revised income tax returns may be accepted by the Cyprus Tax Department provided that certain conditions are met (Circular 9/2023). The submission of a revised income tax return is made only through the submission of Forms T.D.001AN2020 (Individuals) and T.D.004AN2020 (Companies).

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