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Alerts on tax law amendments and other tax related matters are issued periodically to keep you up-to-date with the latest local tax developments.

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Transfer Pricing requirements introduced on the 2018 Tax Return

04 October 2019

We would like to inform you that the Cyprus Tax Authorities (CTA) have recently published the 2018 Corporate Income Tax Return (TD4) which you can find here for your reference. The 2018 TD4 includes two new important requirements in Part 3, relating to transfer pricing as shown below.

Deloitte Tax Resources

12 September 2019

We are pleased to share with you a number of Deloitte tax resources available to help you stay up-to-date with the latest local and international tax developments.

All resources are easily accessible from any device.
 

Reminder of the upcoming submission deadlines for CbC Reporting obligations

11 September 2019

We would like to remind you that 31st December 2019 is the submission deadline for the following Country-by-Country (“CbC”) Reporting obligations in Cyprus:

  • Submission of CbC Reports for the 2018 Reporting Fiscal Year (in respect of MNE groups which have a year end of 31 December 2018)1.
  • Submission of CbC Notifications for the 2019 Reporting Fiscal Year (in respect of MNE groups which have a year end of 31 December 2019)1.

Payment of final tax for the year 2018 for companies and self-employed individuals preparing audited financial statements

11 July 2019

We would like to remind you that the 1st of August 2019 is the deadline for the payment of the final tax for the year 2018 for companies and self-employed individuals preparing audited financial statements.

In case the tax balance is not paid by the end of the month of the deadline date (i.e. by 31 August 2019) a 5% penalty applies on the tax due. In addition, the tax balance will be subject to interest at the rate in force (currently at 2% per annum) until the settlement of the tax. Finally, if the tax balance is not settled within two months after the deadline date, an additional 5% penalty may be imposed.

Reduction of SDC rate applicable on interest income received by Cyprus tax resident domiciled individuals from corporate bonds

08 July 2019

On 26 June 2019 an amendment to the Special Defence Contribution (SDC) Law was published in the Official Government Gazette.

According to the amendment, effective from 26 June 2019, the SDC rate applicable on interest income received by Cyprus tax resident domiciled individuals from corporate bonds is reduced from 30% to 3%. The reduced rate is now in line with the SDC rate applicable on interest earned from Government bonds.
 

Payment of 1st provisional tax instalment for tax year 2019

05 July 2019

We would like to remind you that the deadline for the payment of the first provisional tax instalment for tax year 2019 is the 31st of July 2019.

Provisional tax payment obligation

The following persons should consider whether a provisional tax payment would arise based on their expected annual taxable income:

  •  Individuals with taxable income other than salaries, pensions, dividends and interest, and
  •  Companies with taxable income.

Cyprus – Kazakhstan tax treaty signed and published

28 May 2019

On 15 May 2019, Cyprus signed a tax treaty with Kazakhstan which was published in the Gazette on 24 May 2019.

This is an important development as Kazakhstan is the 9th largest country in the world, the largest of the former Soviet republics (excluding Russia) and a growing economy.

Amendments to the Income Tax Law for the adoption of rules against tax avoidance practices

09 April 2019

Also available in Greek

On 5 April 2019, the House of Representatives voted into law the provisions of the European Council Directive for the adoption of rules against tax avoidance practices that directly affect the functioning of the internal market (known as Anti-Tax Avoidance Directive – ATAD).

The Directive stems from the action plan against Base Erosion and Profit Shifting (BEPS), which is the result of the initiative of the G20 and the member countries of the Organization for Economic Co-operation and Development (OECD) to combat tax evasion through the transfer of profits to countries with preferential tax regimes.

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Records and supporting documentation that should be kept by employers in relation to Benefits in Kind

28 March 2019

Also available in Greek.

Tax Treatment of the Benefits in Kind (BIK)

Further to our previous tax alert dated 11 December 2018, (issue 16/2018), we would like to inform you that the Tax Department has issued Interpretative Circular 32, which clarifies the forms and supporting documentation that should be kept by the employers for each tax year and be available to be provided to the Tax Department in case requested or in case of an examination.

Links to forms: 

FORM T.D.286 A (English)
FORM T.D.286 F (English)

ΤΦ 286 Α (Greek)
ΤΦ 286 Φ (Greek)

Impact of Brexit on VAT refund claims for business expenses incurred in the UK in 2018

06 March 2019

Our Indirect Tax Alert aims to inform you of the impact that the imminent Brexit will have on the deadline for claiming refund of the VAT on business expenses incurred in the UK during 2018 in accordance with Directive 2008/09/EC (formerly 8th Directive). The Directive enables businesses established and registered for VAT purposes within the EU to request a refund of the VAT incurred on business expenses in other EU member states.

 

Tax and other incentives for the film industry

19 December 2018

On 11 December 2018, an amendment to the Income Tax Law (ITL) was published in the Official Government Gazette, providing tax incentives to companies involved in film productions.

The incentives are offered within the context of implementing a scheme approved by the Council of Ministers on 27 September 2017, aiming to attract film production companies to Cyprus. In addition to the two tax incentives provided in the ITL, the scheme provides for other (non-tax) incentives as well.

Extension of submission deadline for CbC Reports

19 December 2018

We would like to inform you that on 18 December 2018 the Cyprus Tax Department has announced that the submission deadline for Country-by-Country (“CbC”) Reports for the 2017 Reporting Fiscal Year has been extended from 31 December 2018 to 31 January 2019. The relevant announcement can be found at the Tax Department’s website.

Provisional tax for 2018 - Reminder

We would like to remind you of the upcoming deadline for the payment of the second instalment and the option to submit a revised provisional tax return for 2018.

As mentioned in our previous tax alert, the following persons have an obligation to submit a provisional tax return:

  • Individuals with taxable income other than salaries, pensions, dividends and interest (ΤD5)
  • Companies with taxable income (ΤD6)

Tax treatment of Benefits in Kind

11 December 2018

Also available in Greek.

The Tax Department has recently published an Informative Guide, in the Greek language, which explains the tax treatment of certain benefits offered by employers to employees and persons who hold or are deemed to hold an office. It is soon expected that the Informative Guide will also be issued in English in the official website of the Tax Department.

Deemed Dividend Distribution for 2018

20 November 2018

Also available in Greek

We would like to remind you of the deemed dividend distribution (DDD) provisions of the Special Contribution for the Defence Law that apply on 31 December 2018.

Tax treatment of Benefits in Kind

19 October 2018

Also available in Greek.

The Tax Department has recently published an Informative Guide, in the Greek language, which explains the tax treatment of certain benefits offered by employers to employees and persons who hold or are deemed to hold an office.

 

Reminder of the upcoming submission deadlines for CbC Reporting obligations

21 September 2018

We would like to remind you that 31st December 2018 is the submission deadline for the following Country-by-Country (“CbC”) Reporting obligations in Cyprus:

  • Submission of CbC Reports for the 2017 Reporting Fiscal Year (in respect of MNE groups which have a year end of 31 December 2017).
  • Submission of CbC Notifications for the 2018 Reporting Fiscal Year (in respect of MNE groups which have a year end of 31 December 2018).

Φορολογικές τροποποιήσεις σχετικά με τις αναδιαρθρώσεις δανείων

3 August 2018

Θα θέλαμε να σας πληροφορήσουμε ότι η Βουλή των Αντιπροσώπων ψήφισε σειρά τροποποιήσεων στους ακόλουθους νόμους:

  • Περί Φορολογίας του Εισοδήματος Νόμος
  • Περί Φορολογίας Κεφαλαιουχικών Κερδών Νόμος
  • Περί Έκτακτης Εισφοράς για την Άμυνα Νόμος
  • Περί Χαρτοσήμων Νόμος
  • Περί Κτηματολογικού και Χωρομετρικού Τμήματος Νόμος

Submission of provisional tax return for 2018

5 July 2018

Also available in Greek.

Deloitte would like to remind you that the submission deadline for the provisional tax return for 2018 is the 31st of July 2018.

Obligation to submit a provisional tax return

The following persons have an obligation to submit a provisional tax return:

  • Individuals with taxable income other than salaries, pensions, dividends and interest (ΤD5)
  • Companies with taxable income (ΤD6)

Extension to the Law Regulating the Settlement of Overdue Taxes  

4 July 2018

Also available in Greek.

On 29 June 2018, the Parliament voted for an amendment to the Law Regulating the Settlement of Overdue Taxes.

The amendment provides for a six month extension to the deadline for the submission of applications for relief from interest and penalties on overdue taxes, for tax years up to and including 2015.
 

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