Tax calendar for 2015

At the end of each calendar month:

  • PAYE deducted from employees’ salaries for the previous month.
  • Payment of tax withheld on payments made to non-tax residents during the previous month.
  • Defence contribution deducted from dividends, interest or rent* paid in the previous month.

*Companies, partnerships, the Government or any local authority that pay rent has an obligation withhold special defence contribution on the amount of the rent paid.

31 January:

  • Submission of the deemed dividend distribution declaration for the tax year 2012.

31 March:

  • Electronic submission of 2013 income tax return for individuals and companies preparing audited accounts.
  • Submission of return and payment of the first instalment of the special tax levy by Credit Institutions for 2015.

30 April:

  • Submission of personal tax returns for 2014 by salaried individuals whose gross income exceeds €19.500.
  • Submission of employers’ return and employees’ details for 2014.
  • Payment of provisional tax by insurance companies (life business) for the first four months of 2015.

30 June:

  • Submission of personal tax return for 2014 by individuals who do not prepare audited accounts if their gross income exceeds €19.500.
  • Payment of tax balance for 2014 through self-assessment by individuals who do not prepare audited accounts.
  • Payment of special contribution for defence in relation to rents, dividends or interest from sources outside Cyprus for the first half of 2015.
  • Payment of the second instalment of the special tax levy by Credit Institutions for 2015.

31 July:

  • Electronic submission of personal tax returns for 2014 by salaried individuals whose gross income exceeds €19.500.
  • Electronic submission of employers’ return and employees’ details for 2014.
  • Submission of provisional tax assessment for 2015 and payment of the first instalment.

1 August:

  • Payment of 2014 tax balance through self-assessment by individuals and companies preparing audited accounts.

31 August:

  • Payment of provisional tax by insurance companies (life business) for the second four months of 2015.

30 September:

  • Electronic submission of personal tax return for 2014 by individuals who do not prepare audited accounts if their gross income exceeds €19.500.
  • Payment of immovable property tax for 2015.
  • Payment of the third instalment of the special tax levy by Credit Institutions for 2015.

31 December:

  • Submission of 2014 tax returns for individuals and companies preparing audited accounts.
  • Payment of the second instalment of 2015 provisional tax.
  • Payment of special contribution for defence in relation to rents, dividends or interest from sources outside Cyprus for the second half of 2015.
  • Payment of provisional tax by insurance companies (life business) for the last four months of 2015.
  • Payment of the fourth instalment of the special tax levy by Credit Institutions for 2015.

Electronic submission of tax returns:

  • Individuals and companies, that prepare audited financial statements or persons that their tax return is submitted by a professional accountant, may be obliged to submit their tax return electronically in accordance with such means that may be approved by the Commissioner of Income Tax.
  • In case of such electronic submission of tax returns, the deadline is extended by 3 months.

Administrative penalties:

Administrative penalties amounting to €100 or €200 depending on the specific case, will be imposed for late submission of declarations or late submission of supporting documentation requested by the Commissioner. In the case of late payment of the tax due, an additional penalty at the rate of 5% will be imposed on the unpaid tax.

Note:

The rate of interest for late payment of tax is determined by the Minister of Finance through a decree and it is applicable for the whole year. The rate for 2015 is 4%.

The applicable interest rate for the previous years is as follows:

Period                                  Interest rate %
Up to 31.12.06:              9
01.01.07 - 31.12.09:    8
01.01.10 - 31.01.10:                     5.35
01.01.11 - 31.12.12:     5
01.01.13 - 31.12.13: 4.75
01.01.14 – 31.12.14:    4.50

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  Resources:

European Commission publishes tax avoidance disclosure directive

European Commission publishes tax avoidance disclosure directive

The EC (European Commission) has published its draft legislation compelling financial service providers or intermediaries to disclose any international tax planning schemes they have encouraged, enabled or assisted in any way.

OECD publishes compliance review for all non-compliant jurisdictions

OECD publishes compliance review for all non-compliant jurisdictions

The OECDs global tax transparency initiative was launched last year in April 2016, with the purpose of encouraging every jurisdiction across the world to commit to implementation of a CRS (Common Reporting Standard) for automatic exchange of information by 2018, and to sign the Multilateral Convention on the exchanging of tax data. A forum on behalf of the OECD has released the results of its review for jurisdictions it considers to be non-compliant.

EU Parliament Committee release findings & recommendations for current offshore taxation measures

EU Parliament Committee release findings & recommendations for current offshore taxation measures

A formal enquiry into the Panamanian law firm Mossack Fonseca has been launched by the European Parliament's Committee, which found gaps in beneficial ownership transparency for trusts and fiduciaries and didn’t meet the EU standard.

2017 G20 summit: Enforcement of taxation highest priority

2017 G20 summit: Enforcement of taxation highest priority

The 2017 G20 leaders’ summit took place in Hamburg last week where the European Commission Council and leaders discussed the priorities and primary projects for the upcoming summit. EC President Jean-Claude Juncker has stated that advancing the global combat against tax evasion is top of the list.

The EC takes action against advocates promoting tax avoidance schemes

The EC takes action against advocates promoting tax avoidance schemes

The European Commission has recommended the implementation of a new regulation regarding companies or intermediaries who promote or design cross-border tax planning schemes will going forward be required to provide full disclosure to the tax authorities of their relevant jurisdiction within five days of offering them to clients.

What are the new Beneficial Ownership reporting requirements for BVI companies?

What are the new Beneficial Ownership reporting requirements for BVI companies?

Going forward, a new regulation will require certain British Virgin Islands companies to gather and retain details of Beneficial Owners with 25% or more of the company’s shareholding rights, with an ongoing requirement to keep the details up to date.

Russian citizens can gain Cyprus tax residency by staying only 60 days on island, whats the catch?

Russian citizens can gain Cyprus tax residency by staying only 60 days on island, whats the catch?

Cyprus is once again working to improve its economic desirability and will be able to increase its alternative business base for Russians with good creditworthiness.

Cyprus tax department releases new guidance on CRS deadlines and the online portal

Cyprus tax department releases new guidance on CRS deadlines and the online portal

The Cyprus Tax Department has released a notification to all Cyprus based Financial Institutions & Service Providers of the new guidance notes on the Automatic Exchange of Financial Account Information and other information relating to the Common Reporting Standard (CRS).