NEWS  


Extension to the filing date of tax returns

The following deadlines have been extended by the Cyprus government for the filing of tax returns by companies and individuals: The last date for the filing of an individual's ...


Extension for filing of corporate tax returns

On 12 March 2021 the Tax Department issued an announcement in relation to the extension of the deadlines for the submission of the 2019 corporate income tax return and the 2019 ...


Interest and dividends – declarations through Taxisnet

There are new declarations on Taxisnet through which Special Defence Contributions and GESY should be recorded on the payment of interest and dividends. The printed forms 61AT and 61AM are now also available in electronic form and can be submitted through the Taxisnet as follows: Form T.D.602 - declaration of Special ...


Tax incentives for the employment of foreign individuals

In order to attract foreign employees to work in Cyprus, law was passed in 2012 giving various tax incentives up to 31 December 2020 for foreign individuals. These stated that the lower of €8.550 or 20% of the remuneration from any employment exercised in Cyprus by an individual who was resident outside Cyprus the tax ...


Extension for filing of personal tax returns

It has been announced by the Commissioner of Taxation that if a person's gross income for the year 2019 exceeds €19.500 (it applies to employees, pensioners and self-employed persons who do not prepare audited financial statements) the date for filing of their electronic personal tax return (IR1) for the year 2019 and ...


Tax information

  Personal tax returns – up to the year 2019 an individual was only obliged under the law to file his personal tax return if his income exceeded €19.500. From year 2020 all individuals are obliged to file a personal tax return irrespective of their level of income. A revised tax return can now be filed within three ...


Extension for filing of personal tax returns

It has been announced by the Commissioner of Taxation that if a person's gross income for the year 2019 exceeds €19.500 (it applies to employees, pensioners and self-employed persons who do not prepare audited financial statements) the date for filing of their personal tax return (IR1) for the year 2019 and the ...


Changes to the Cyprus - Russian double taxation treaty

Negotiations to the Cyprus and Russian double taxation treaty have taken place following the request from Russia for an increase in the withholding tax on income from dividends and interest to 15% (currently the treaty provides for withholding tax of either 5% or 10% on dividends, and 0% on interest)  It was finally ...


Filing of companies temporary tax return for the year 2020

It is a requirement of the Cyprus tax system that tax on a company's profits for the current tax year ending 31.12.2020 is prepaid.   The temporary tax returns for 2020 must be completed and filed on time. Any tax thereof, if applicable, must be paid in two equal installments these being 31 July and 31 December. Late ...


Extension for filing of personal tax returns

It has been announced by the Commissioner of Taxation that if a person's gross income for the year 2019 exceeds €19.500 (it applies to employees, pensioners and self-employed  persons who do not prepare audited financial statements) the date for filing of their personal tax return (IR1)  for the year 2019 and the ...


Extension for filing of tax returns

It has been announced by the Commissioner of Taxation that the date for filing of tax returns by companies or self-employed persons who prepare financial statements for the year ...


Corona virus – tax and VAT measures

As a result of the disruption caused by Corona Virus disease, the Cyprus government has taken taxation and VAT measures in order to support the local economy. These are as follows: Taxation The new submission deadline for the 2018 corporate income tax returns and personal income tax returns of individuals preparing ...


Penalties and interest relief on overdue taxes

On 7 February 2020 the Cyprus government passed a new Law providing significant reliefs (from 50% up to 95%) on interest and penalties on overdue taxes including income tax, VAT, special defence contribution tax, capital gains tax and stamp duty, depending on the number of instalments chosen for settlement of the ...


The Cyprus - Kazakhstan Double Tax Treaty

Kazakhstan implemented the Cyprus - Kazakhstan Double Tax Treaty on 30 December 2019 which Cyprus ratified on 24 May 2019. The Treaty is now in force and will be in effect as from 1st of January 2021.   Below is a summary of the main provisions of the Treaty.   Dividends   ·     Withholding tax at 5% on ...


2019 Temporary Tax Return

The second instalment of the 2019 temporary tax is due by the 31 December 2019. The 2019 temporary tax assessment can be revised any time before the 31 December 2019. If the revised amount is higher than when it was first declared there will be a 2% interest payable on the difference between the revised amount and ...


annual Returns and penalties

All Cyprus companies have an obligation to file with the Registrar of Companies an Annual Return (HE32), which must be accompanied by the company’s audited financial statements of the previous year.   In accordance with the new Law N. 149(I)/2018 the Annual Returns (HE32) for all the years up to and including 2018 ...


Cyprus - Ukraine Double Tax Treaty

The protocol to the Cyprus – Ukrainian double tax treaty which was signed in 2015 was enacted into law by Ukraine on 30 October 2019 and shall have effect on 1st  January 2020.   The main provisions of the protocol are as follows: -   Dividends – a 5% withholding tax will be levied if the dividends are paid ...


Cyprus - Egypt Double Tax Treaty

A double tax treaty with Egypt was signed on 8 October 2019, the provisions of which will take effect on or after 1 January following the date the treaty enters into force. Currently Egypt levies withholding taxes of 10% on dividends and 20% on interest and royalties. Under the Cyprus – Egypt double tax treaty the ...


Cyprus - Netherlands Double Tax Treaty

A new double tax treaty with The Netherlands was concluded in September 2019, the provisions of which will take effect on or after 1 January 2021.   The taxes that are covered are as follows: -   Dividends – the treaty provides for a 15% withholding tax on dividends unless the beneficial owner of the dividend ...


Filing of companies temporary tax return for the year 2019

It is a requirement of the Cyprus tax system that tax on a company’s profits for the current tax year ending 31.12.2019 is prepaid.   The temporary tax returns for 2019 must be completed filed on time. Any tax thereof, if applicable, must be paid in two equal installments these being 31 July and 31 December. Late ...


Cyprus - Kazakhstan Double Tax Treaty

A double tax treaty with Kazakhstan was signed on 15 May 2019, the provisions of which will take effect on or after 1 January following the date the treaty enters into force. Currently Kazakhstan levies withholding taxes of 15% on dividends, interest and royalties. Under the Cyprus – Kazakhstan double tax treaty the ...


European Conference showcases commitment

Turning global economic challenges into opportunities and facilitating greater member collaboration were the key themes of Morison KSi’s first conference of 2019.       Download pdf


Cyprus - Andorra Double Tax Treaty

The double tax treaty with Andorra which was signed on 18 May 2018 will come into effect on 1st January 2020. The main provisions of the treaty are as follows: - Dividends, interest and royalties - no withholding tax will be levied on dividend interest or royalty payments. Capital gains – Cyprus retains the ...


Extension to the deadline for the submission of tax returns

It has been announced by the Cyprus Tax Authorities that the deadline for the submission of income tax returns for the year 2017 of a company (IR4) and self-employed persons who prepare financial statements (IR1) has been extended from 31 March 2019 to 30 April 2019. Late submission will result to a penalty of €100.


National Health Insurance System (NHIS)

As from 1 March 2019 all employees, pensioners, self-employed and persons having rental income must contribute 1,7% of their monthly income (self-employed persons must contribute 2,55%) to the National Health Insurance System (ΓεΣΥ). Employer’s contributions will be 1,85% and the State will contribute 1,65% for each ...


Brexit – VAT treatment

The United Kingdom submitted on 29 March 2017 the notification of its intention to withdraw from the European Union. In the absence of a Withdrawal Agreement, the UK will be treated as a non-EU country as of 30 March 2019. Therefore, the provision of services and the imports and exports of goods from and to the United ...


Interest on tax payments / repayments

The interest imposed on tax amounts payable / refundable for various tax years has been confirmed as follows:- From 1.1.2014 – 4,50% From 1.1.2015 – 4,00% From 1.1.2017 – 3,50% From 1.1.2019 – 2,00%


Benefits in Kind

The Tax Department has published a guide which explains the tax treatment of certain benefits offered by employers to employees and persons who hold an office. The Tax Department ...


Cyprus - Luxembourg Double Tax Treaty

A double tax treaty with Luxembourg will come into effect on 1st January 2019. The main provisions of the treaty are as follows: - Dividends - no withholding tax will be levied on dividend payments where the recipient is a company, being the beneficial owner of the dividends and holds at least 10% of the capital of ...


Cyprus credit ratings are raised to Investment Grade

Standard & Poor (one of the first credit rating agencies to downgrade Cyprus’ ratings to junk in 2012) has now upgraded Cyprus’ credit ratings to investment grade. Standard & Poor anticipate that strong economic growth through 2021, prudent policymaking, and moderate state support to the banking system will ...


Cyprus – United Kingdom double tax treaty

The new double tax treaty with the United Kingdom which had been signed on the 22nd of March 2018, has now entered into force and will come into effect on 1st January 2019. It ...


Accelerated capital allowances

An amendment to the income tax law published on 24 November 2017 extended the eligibility for accelerated capital allowances for acquisitions made during the years 2017 and 2018 ...


Accelerated capital allowances

An amendment to the income tax law published on 24 November 2017 extended the eligibility for accelerated capital allowances for acquisitions made during the years 2017 and 2018 ...


Annual Company Fee

In accordance with the Companies Amendment Law of 2012 and 2013 all companies must now pay the Annual Company Fee for the year 2012 of €350 irrespective if such companies were formed in the year 2012 or were dormant during the year 2012. The Annual Company Fee must be paid by 29 March 2013.


Common Reporting Standard (CRS)

In an effort to improve global tax transparency, the Cyprus government has adopted the standard of automatic exchange of information developed by the Organization for Economic Co-Operation and Development (OECD) known as Common Reporting Standard (CRS). Starting from 1 January 2016, the Cyprus Tax Authorities require ...


Cyprus - Luxembourg

On Monday 8 May 2017 Cyprus and Luxembourg have signed a double tax avoidance and prevention of tax evasion treaty based on the model convention of the Organisation for Economic ...


Cyprus and Barbados double tax treaty

A Double Tax Treaty had been signed between the Cyprus government and Barbados on 3 May 2017. It is expected to strengthen the economic relations between the two countries as they ...


Cyprus and Jersey double tax treaty

A Double Tax Treaty which had been signed between the Cyprus government and Jersey on 11 July 2016 becomes effective as from 1 January 2018. It is expected to strengthen the ...


Cyprus from Non – Compliant to Largely Compliant

At its meeting in Barbados on 29 and 30 October 2015 the Global Forum on Transparency and Exchange of Information for Tax Purposes of the OECD (the Global Forum) approved the supplementary report for Cyprus, which had previously been rated as Non-Compliant. Following significant changes to Cyprus’s legal framework and ...


Cyprus tax resident individual

The Cyprus Parliament voted into law on 14 July 2017 an amendment to the definition of “Cyprus tax resident individual”. As from 1 January 2017 a person who: Does not spend more than a total of 183 days in any state within a tax year, and Is not a tax resident of another state within the same tax year and who ...


Cyprus – Andorra, double tax treaty

On 18 May 2018 Cyprus signed a tax treaty with Andorra the provisions of which will come into effect on 1st January following the date the treaty comes into force. The treaty is ...


Cyprus – Iran double tax treaty

The double tax treaty between Cyprus and Iran which was signed on 4 August 2015 generally applies as from 1 January 2018. The treaty applies to taxes on income as well as profits ...


Cyprus – Russian protocol agreement

The Cyprus Ministry of Finance announced on 29 December 2016 that an agreement has been reached between the Russian Authorities and the Authorities of Cyprus for postponing the ...


Cyprus – Saudi Arabia double tax treaty

On 3rd January 2018 Cyprus signed a tax treaty with Saudi Arabia the provisions of which will come into effect on 1st January following the date the treaty comes into force. It covers the following taxes: Dividends – There is no withholding tax on dividends if the investing company holds at least 25% of the capital of ...


Cyprus – Saudi Arabia double tax treaty

On 3rd January 2018 Cyprus signed a tax treaty with Saudi Arabia the provisions of which will come into effect on 1st January following the date the treaty comes into force. It covers the following taxes: Dividends – There is no withholding tax on dividends if the investing company holds at least 25% of the capital of ...


Double Tax Treaties

The following Double Tax Treaties have been signed by the Cyprus government and will become effective as from 1 January 2016: Switzerland (signed in 2014) Iran (signed in ...


Double tax treaty with Barbados

The Double Tax Treaty between the Cyprus government and Barbados came into effect on 1 January 2018. The treaty is based on the OECD model convention and provides for zero ...


Electronic filing of VAT forms

The Commissioner of Taxation of Cyprus has notified that all persons and entities who are registered for VAT purposes in Cyprus will have to file their VAT returns electronically ...


Electronic payment of PAYE

As from 1 March 2018 the monthly payment of PAYE which was withheld by employers from their employees’ salaries can be settled only through the service offered by JCCsmart. In case of late payment of this tax liability, interest and penalties will be levied, and in such a case its settlement will only be possible at ...


Ethiopia Double Tax Treaty

A Double Tax Treaty has been signed between the Cyprus government and Ethiopia on 30 December 2015 which will become effective as from 1 January 2017.


Filing of companies temporary tax

It is a requirement of the Cyprus tax system that tax on a company’s profits for the current tax year ending 31.12.2017 is prepaid. The temporary tax returns for 2017 must be completed filed on time. Any tax thereof, if applicable, must be paid in two equal installments these being 31 July and 31 December. Late payment ...


Filing of companies temporary tax return for the year 2018

It is a requirement of the Cyprus tax system that tax on a company’s profits for the current tax year ending 31.12.2018 is prepaid. The temporary tax returns for 2018 must be completed and filed on time. Any tax thereof, if applicable, must be paid in two equal installments these being 31 July and 31 December. Late ...


Filing of income tax

The last date for the filing of the income tax return for the year 2016 for self-employed persons is as follows:- 30 June 2017 if the income tax return is filed in a hard copy ...