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Tax Deadlines

22-06-2016

End of each month


  • PAYE for employees deducted from salaries relating to the previous month.
  • Special contribution for employees deducted from salaries relating to the previous month.
  • Social insurance contributions relating to salaries of the previous month.
  • Special Contribution for Defence to be withheld from Cyprus sourced dividends and interest for tax resident and domiciled individuals relating to previous month.
  • Special Contribution for Defence to be withheld from Cyprus sourced rent paid to tax resident and domiciled individuals (when tenant is a company, partnership, the state or local authority) relating to previous month.

31 January

  • Submission of the deemed distribution declaration (Form IR 623) for the year ended 31 December 2013.

28 February

  • Submission of objections relating to tax assessments issued during December 2015.

31 March

  • Electronic submission of the 2014 corporation income tax return (Form IR4).
  • Electronic submission of the 2014 income tax return (Form IR1) for individuals preparing audited financial statements.

30 April

  • Manual submission of the personal income tax return (Form IR1) for 2015 for salaried individuals whose gross income exceeds €19.500.

30 June

  • Manual submission of personal income tax return (Form IR1) for 2015 by self-employed individuals who do not prepare audited financial statements if their gross income exceeds €19.500.
  • Payment of the 2015 personal income tax under a self-assessment method by individuals not preparing audited financial statements (employees and self-employed).
  • Payment of the 2016 special contribution for defence on rents, dividends or interest from sources outside Cyprus for the first 6 months of 2016.

31 July

  • Electronic submission of the employers return for 2015 (Form IR7).
  • Electronic submission of the personal income tax return (Form IR1) for 2015 for salaried individuals whose gross income exceeds €19.500.
  • Submission of the 2016 temporary tax assessment and payment of the first installment for both individuals and companies.

1 August

  • Settlement of the 2015 final corporation tax and personal tax for individuals preparing audited accounts.

30 September

  • Electronic submission of personal income tax return (Form IR1) for 2015 by self-employed individuals who do not prepare audited financial statements if their gross income exceeds €19.500.

31 December

  • Payment of temporary tax - second and last installment for 2016.
  • Payment of the 2016 special contribution for defence on rents, dividends or interest from sources outside Cyprus for the second 6 months of 2016.


Tax Due Dates for Payment of Social Insurance Contributions of Self-Employed


  • For the months of January to March -  Payment by the 10th of following May
  • For the months of April to June -  Payment by the 10th of following August
  • For the months of July to September  - Payment by the 10th of following November
  • For the months of October to December - Payment by the 10th of following February

Tax Interest & Penalties

applicable in Cyprus

10-05-2016

Interest is payable for late payments at the following official rates: 


Amounts outstanding from


before 1 January 2007

1 January 2007 to 31 December 2009

1 January 2010 to 31 December 2010

1 January 2011 to 31 December 2012

1 January 2013 to 31 December 2013

1 January 2014 to 31 December 2014

1 January 2015 to 31 December 2015

1 January 2016 onwards



Rate ( % )


9

8

5.35

5

4.75

4.5

4

4

Penalties: The following penalties apply for late payment of taxes and late submission

of Income tax returns:

Relating to



Late submission of Tax returns


Low Estimation and payment of yearly

Temporary Tax


Payment of CT after 31/8 of the following year


Payment of CT one month after the yearly tax return deadline


Payment of IT by self-employed persons after 31/7 of the following year


Payment of SDC on interest income after the

due date


Payment of PAYE tax after the end of the

following month


Amount

(€)


100


n/a



n/a


n/a



n/a



n/a



n/a


Rate ( % )



n/a


10



5


5



5



5



1 each month

Cyprus Basic Tax Rates 2016

01-05-2016

Personal income Tax Rates

Taxable Income (€)


0 - 19.500

19.501 - 28.000

28.001 - 36.300

36.301 - 60.000

60.001 and over

Tax Rate (%)


0

20

25

30

35


Tax (€)


0

1.700

2.075 

7.110 

Cumulative Tax


0

1.700

3.775

10.885


Corporation Tax Rate

Corporate income tax is 12.5%


Special contribution for defence rates

Special contribution for defence is imposed on the following sources of income at the rates indicated below:


Source

Dividends

Interest income

Interest received by an individual from Government Savings Certificates and Government Bonds

Interest earned by an approved provident fund

Interest earned by the Social Insurance Fund

Rental income less 25%

Rate

17%

30%

3%


3%

3%

3%


Capital Gains Tax

Capital Gains Tax is payable by both residents of Cyprus and non-residents at the rate of 20% on the profit following the sale of a property in Cyprus after allowable deductions have been made. 


Inheritance / Gift Tax

Inheritance tax have been abolished. There is no tax on gifts.

Cypriot Citizenship

10-04-2016

Cyprus is considered to be one of the most popular jurisdictions to obtain citizenship due to its geographical location, EU member status, excellent infrastructure and high standards of living. Citizens of the Republic of Cyprus enjoy unrestricted travel to the EU region. They can also travel visa free to more than 140 countries.

Social Insurance Cyprus

10-03-2016

Who is entitled to old age pension out of the Social Insurance Fund?


Old age pension is payable to an insured person who completes the pensionable age, which is the age of 65 (age of 63 for miners), and satisfies the relevant contribution conditions which are the following: 


  • the insured person must have been insured for at least 780 weeks up to the pensionable age, have paid basic insurance up to the pensionable age equal to at least 780 times the weekly amount of Basic Insurable Earnings and,


  • the number of insurance points of paid and assimilated basic insurance for the period between 5 October 1964 (or, if he/she reached the age of 16 after 5 October 1964, the first day of the year in which he reached that age), or since 7 January 1957 where it is most profitable for the beneficiary, and the week before the week which includes the day of entitlement, is equal to at least 30% of the years included in that period.


An insured person, however, is entitled to old age pension at the age of 63 if he satisfies the first contribution condition, mentioned above, and has a weekly average of insurable earnings equal to 70% of the weekly amount of basic insurable earnings.