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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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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.
 

Tax Intermediaries’ Directive enters into force on 25 June 2018

25 June 2018

On 13 March 2018, the EU Member States reached political agreement on the tax intermediaries’ directive (“the Directive”). The Directive was formally adopted by the EU Council on 25 May 2018 as an amendment to Council Directive 2011/16/EU on administrative cooperation in the field of taxation.

Deadline for the submission of personal income tax returns and final tax payment for 2017

12 June 2018

Also available in Greek.

Following a recent amendment to the Assessment and Collection of Taxes Law and a relevant notification issued in the Government Gazette, we would like to inform you that the deadline for the submission of the personal income tax returns and the final tax payment for tax year 2017 has been extended until 31 October 2018.

 

Tax Treaty signed with Andorra

4 June 2018

On 18 May 2018, Cyprus signed a tax treaty with Andorra, which was published in the Gazette on 1 June 2018. The tax treaty is based on the OECD Model Convention and provides for NIL withholding tax on dividend, interest and royalty payments.
 

Mandatory electronic payment of taxes from 1 June 2018

27 April 2018

Also available in Greek.

As part of the Government’s effort to improve the electronic services offered to taxpayers, the Tax Department has recently announced that as from the 1st of June 2018, the settlement of the following taxes can be effected only electronically through the JCCsmart website.

New tax treaty signed with the United Kingdom

3 April 2018

On 22 March 2018, Cyprus signed a new tax treaty with the UK which was published in the Gazette on 2 April 2018. The treaty is based on the OECD Model Convention. Download the alert to find out its key provisions.

Extension of the submission deadline for income tax returns for companies and self-employed individuals

23 March 2018

On 20 March 2018, the Tax Department announced the
extension of the submission deadline for corporate income tax returns (T.D.4) and income tax returns of self-employed individuals that prepare audited financial statements (T.D.1 Acc) for the year 2016, to 30 June 2018.

Greek version below:

Παράταση στην ημερομηνία υποβολής δήλωσης εισοδήματος εταιρείας και αυτοεργοδοτούμενου για το έτος 2016

Στις 20 Μαρτίου 2018, το Τμήμα Φορολογίας ανακοίνωσε την παράταση της ημερομηνίας υποβολής δήλωσης εισοδήματος εταιρείας (Τ.Φ.4) και δήλωσης εισοδήματος αυτοεργοδοτούμενου με εξελεγμένους λογαριασμούς (Τ.Φ.1 ΛΟΓ) για το φορολογικό έτος 2016, μέχρι τις 30 Ιουνίου 2018.

Supreme Court rules on VAT on provision of accommodation services under ‘commitment contracts’

7 March 2018

Also available in Greek.

On 27 September 2017, the Cyprus Supreme Court issued its decision in a case involving the application of VAT to ‘commitment contracts’ in the hotel sector where tour operators do not use all the pre-booked rooms.

Imposition of VAT on letting of immovable property – VAT Circular 220

6 March 2018

Also available in Greek.

As from 13 November 2017, Cyprus VAT at the standard rate of 19% is imposed on the letting of immovable property.

The relevant legislation was published on 13 November 2017 and on 2 January 2018 the Cyprus VAT Department released Interpretative Circular 220, which clarifies some aspects of the new law with regards to letting.
 

VAT: Imposition of VAT on transfers of building land

20 February 2018

Also available in Greek.

As from 2 January 2018, Cyprus VAT at the standard rate of 19% is imposed on certain transactions involving immovable property, including the transfer of undeveloped building land.

 

VAT: Tour Operators Margin Scheme - Interpretative Circular 223

07 February 2018

Also available in Greek.

The Cyprus Tax Department issued guidance (Interpretative Circular No. 223) on 24 January 2018 that addresses the application of the special EU Tour Operators Margin Scheme (TOMS) following the decision of the European Court of Justice (CJEU) issued on 23 September 2013. (Although the authorities intend to apply the circular with retrospective effect from 23 September 2013, the date of the CJEU decision, this may not be possible due to previously issued guidance).

 

Tax Treaty signed with Saudi Arabia

09 January 2018

On 3 January 2018, Cyprus signed a tax treaty with Saudi Arabia.

The tax treaty is based on the OECD Model Convention and its main provisions are briefly outlined in our alert.
 

Extension to the Law Regulating the Settlement of Overdue Taxes

05 January 2018

Also available in Greek.

Following our previous issue 18/2017, we would like to inform you that on the 3rd of January 2018 an amending law was published in the Official Government Gazette which extends the deadline for the submission of applications to enter the scheme for specific tax liabilities.

Extension of Country-by-Country Reporting Deadlines

11 December 2017

On 11 December 2017, the Cyprus Tax Department (CTD) announced the extension of certain deadlines related to Country-by-Country (CbC) Reporting. Αs 2017 is the first year that CbC filings become due, the extensions will facilitate the compliance of taxpayers with the new legislation.

Deemed Dividend Distribution for 2017

28 November 2017

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 2017.

Amendment to the Law Regulating the Settlement of Overdue Taxes

16 November 2017

Also available in Greek.

The House of Representatives approved an amendment to the Law Regulating the Settlement of Overdue Taxes, which was published in the Official Government Gazette on 13 November 2017.

Imposition of VAT 19% on land transactions for business purposes

06 November 2017

Also available in Greek.

On the 3rd of November 2017, an amendment to the VAT legislation has been voted into Law by the House of Representatives in relation to the imposition of VAT at 19% on land transactions for business purposes. Download full alert for its provisions.

Amendments to the Law Regulating the Settlement of Overdue Taxes

03 October 2017

Also available in Greek.

Following the implementation of the Law Regulating the Settlement of Overdue Taxes (previous issues 5/2017 and 13/2017) an amending law was published in the Official Government Gazette on 22 September 2017. Download full alert for its provisions.

VAT payments to the Authorities can now be made by electronic transfer through online banking

27 September 2017

The Cyprus Tax Department has recently announced that taxpayers from now on will be able to pay their VAT liabilities through online banking.

Specifically the Tax Department has agreed with four major commercial banks (namely Ancoria Bank, Hellenic Bank, Cyprus Co-operative Bank and Bank of Cyprus) to offer to their clients a relevant facility to make VAT payments from their internet banking service. Other commercial banks are expected to introduce this option soon.

Indirect Tax News

Amendments to the Assessment and Collection of Taxes Law

21 July 2017

Also available in Greek.

On 14 July 2017 an amending law to the Assessment and Collection of Taxes Law was published in the Official Government Gazette. Download the full alert for information on the amendments. 

 

Amendment of the term “Cyprus tax resident individual”

17 July 2017

Also available in Greek.

On 14 July 2017, the House of Representatives approved an amendment to the Income Tax Law that extends the definition of “Cyprus tax resident individual”. The amendment applies retroactively as from 1 January 2017.

Submission of provisional tax return for 2017

12 July 2017

Also available in Greek.

Deloitte would like to remind you that the submission deadline for the provisional tax return for 2017 is the 31st of July 2017. 

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)
 

 

VAT repayments (refunds) by electronic transfer

06 July 2017

The Tax Department has recently announced a new development in relation to VAT repayments (refunds).

The Tax Department will soon introduce the electronic transfer of VAT repayments to taxable persons via bank transfer. The issuing of bank cheques which is the current practice will be terminated following the implementation of electronic transfers.
 

New rules for taxation of intra-group financing arrangements

03 July 2017

On 30 June 2017, the Cyprus Tax Department (“CTD”) issued a Circular with respect to the new rules for the taxation of intra-group financing arrangements which apply from 1 July 2017. The new Circular provides for the application of transfer pricing methodology to such activities based on the arm’s length principle as advocated by the OECD.

Notification under the law regulating the settlement of overdue taxes

27 June 2017

Also available in Greek.

On 23 June 2017, and following the voting of the law on 3 February 2017, the Notification under the law regulating the settlement of overdue taxes was published in the official gazette. The Notification provides details of the process and the years to which the scheme will apply as well as the discounts to be provided.

Revised Decree on Country-by-Country Reporting issued by the Cyprus Minister of Finance

30 May 2017

Following the relevant announcement of the Cyprus Tax Department in February this year, the Cyprus Minister of Finance issued on 26 May 2017 a Revised Decree on Country-by-Country (CbC) Reporting, under the powers conferred by Section 6(16) of the Assessment and Collection of Taxes Law. The Revised Decree replaces the initial Decree which was issued on 30 December 2016.

Tax treaty signed with Luxembourg

23 May 2017

Cyprus and Luxembourg signed a tax treaty on 8 May 2017. The treaty is expected to strengthen economic ties between the two EU member states. 

Tax Treaty signed with Barbados

15 May 2017

On 3 May 2017, Cyprus signed a tax treaty with Barbados, which was published in the Gazette on 12 May 2017. The conclusion of the Cyprus - Barbados tax treaty is expected to enhance the economic relations between the two countries, which both have a service-based economy.

 

 

Extension of the submission deadline for the 2016 personal income tax return for salaried individuals

25 April 2017

Also available in Greek.

The Tax Department announced the extension of the submission deadline for the 2016 personal income tax return for salaried individuals.

Cyprus-Iran Tax Treaty effective from 1 January 2018

07 April 2017

The tax treaty signed between Cyprus and Iran on 4 August 2015 entered into force on 5 March 2017 and its provisions will come into effect as from 1 January 2018. 

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