Tax Diary

Date / Deadline Subject Matter Document Notes
End of the following month Payment of Tax deducted (PAYE) from employees salaries for the previous month. IR61 5
Payment of Social insurance and other contributions deducted from employees salaries for the previous month 7
Payment of special contribution for defense on the basis of dividends, rent and interest received in the previous month. IR601 2
31 January each year Submission of declaration of deemed dividend distribution for the year ended 31 December 2014 IR623
30th April each year Income tax return for individuals * IR1 1.8
30 June each year Payment of special contribution for defense on the basis of rental income earned in the previous 6 months. IR601 2
Income tax return by individuals that obliged to issue invoices e.t.c but not audited accounts* IR1 1.8
Payment of previous year’s tax balance by individuals as mentioned above 3
31 July each year Electronic submission by employers of the total 2015 payroll IR7 8
Submission of temporary tax assessment for the current year. IR6 3
Payment of the 1st installment as per the temporary tax assessment for the current year. 3
1 August each year Payment of last year’s outstanding balances due through self assessment method for companies preparing audited accounts. IR158 4
30 September each year Submission of 2015 personal tax returns of individuals not required to prepare audited financial statements but whose incomes include income from a trade/business, rents, dividends, interest, royalties or income relating to trading goodwill and payment of tax via the self-assessment method.
Payment of immovable property tax for the current year. IR301
IR302		 6
31 December each year Submission of Company’s tax returns for the previous year* IR4 1.8
Payment second and last installment as per the temporary tax assessment for the current year. 3
Payment of the second installment of special contribution for defense on the basis of rental income earned in the previous six months. IR601 2
Submission of a revised temporary tax assessment for the current year (if necessary) IR6 3
Income tax return by individuals that obliged to submit audited accounts* IR1 1.8
Within 30 days  Payments of Capital Gains Tax 6
Within 60 days  Obtaining a Tax Identification Code: Following the registration or incorporation of a company with Registrar of Companies, the company is obliged to submit an application for registration with the Inland Revenue Department. Similar rules apply in the case of companies incorporated outside Cyprus that become tax resident of Cyprus. IR162 9
Within 60 days period of such change Notification of changes of companies details (i.e registered office, activities, auditors etc) IR162 10
Four months from the month of the month Updating of books and records by businesses which are obliged to keep accounting books 11
Within 30 days Issuance of invoices within 30 days from the date the transaction was made, unless the taxable person requests in writing and receives such extension from the Commissioner. 12
At the end of the financial period  Stock taking must be conducted annually by businesses which have inventory. 13
Within the timeframe specified by the tax authorities. Submission of information requested in writing by the tax authorities. 14

 

*extended up to 3 months if submitted electronically.

Notes:

  1. A penalty of €17 per day for as long as failure continues is imposed or imprisonment up to twelve months or both. Any person who without any excuse omits any item of the tax from the return shall be liable, on conviction to a fine up to €3417 plus the tax due plus in amount equal to two times the difference between the amount of tax properly imposed and the amount of tax that would have been imposed had the assessment been based on the return.
  2. Defence contribution payment is due at the end of the month that follows the month to which it relates. Relating specifically to rental income; interest at the rate of 4% per annum is imposed from the first day after the end of the six-month period.
  3. Failure to pay the taxable income included in the temporary tax assessment by the due date: In case the taxable income included in the temporary tax assessment is less than 75% of the actual tax, a penalty of 10% on the difference is paid. If the instalment is not paid within 30 days from the due date interest of 4% per annum is charged on the amount due. If there is a delay in payment a penalty of 5% is imposed on the tax due.
  4. Failure to pay tax by the due date:
    Interest is imposed at the rate of 4% per annum (Interest is calculated for complete months).
    Any tax due is liable to an additional penalty of 5% in the case where the tax return is not submitted within 30 days after the deadline.
  5. Failure to pay P.A.Y.E. and Defence tax by the due date:- Interest is imposed at the rate of 4% per annum from the due date and an additional penalty of 1% per month as long as the delay continues- The total amount of the additional penalty cannot exceed 11% of the tax due (interest is calculated for complete months).
  6. Late payment of immovable property tax results in the imposition of interest at the rate of 4% per annum from the due date.
  7. Late payment of Social Insurance results in the imposition of a penalty of 3% for each month of delay as long as the delay continues. The total amount of the penalty cannot exceed 27% of the amount due.
  8. Late submission results in the imposition of a penalty equal to €100. In case where notice had been issued by the tax authorities to delivering the return and this had not been occurred; a penalty up to €200 for each notice issued is the case.
  9. Late registration with the Inland Revenue Department results in the imposition of a penalty equal to €100.
  10. Late communication of changes to the Inland Revenue Department results in the imposition of a penalty equal to €100. The penalty is applicable on each change not communicated.
  11. If the accounting books are not kept on a regular basis results in the imposition of a penalty equal to €100 (on a quarterly basis)
  12. If invoices are not issued on a timely basis then there is an imposition of a penalty equal to €100. The penalty is imposed on a monthly basis irrespective of the number of invoices failed to be issued within a specific month.
  13. If no stock taking is performed every tax year a penalty equal to €100 is imposed.
  14. Late submission of information requested by the Inland Revenue Department, results in the imposition of a penalty equal to €200.

VAT/INTRASTAT/VIES diary

Date/deadline Subject matter Document Notes
10th day of the month following the month following the period end. VAT return submission and VAT payment. VAT 4 1.2
10th day of the month following the period end. Intrastat submission. Intrastat 1,1 & intrastat 1,2 3
15 days after the end of period. Submit VIES for goods and services VIES 1 4

Notes:

  1. Penalty up to €51 per VAT return if late submitted.
  2. Penalty of 10% on the basis of outstanding amount and interest of 4%* on the outstanding amount if late payment.
  3. Penalty of €15 if late submission for each Intrastat return.
  4. Penalty of €50 for each VIES form if late submitted.

*Applicable interest rates as of 1/1/2015 is 4%. (4,50% for 2014, 4,75 for 2013, 5% for 2011, 5.35% for 2010; 8% for 2007-2009; previously 9%)

Please contact a member of our staff for further information and/or clarifications.