Tax Diary

Date	Obligation	Form	Penalties
January 31	Submission of deemed dividend distribution form	I.R.623	6, 7
April 30	Submission of Income Tax Return by individuals (deadline extended by 3 months in case of electronic submission)	I.R.1	1,6
	Submission of Employer’s Return (electronic submission)	I.R. 7	6
June 30	Submission of Income Tax Return by individuals who do not submit audited accounts but are obligated to issue invoices, receipts, etc. (deadline extended by 3 months in case of electronic submission)	I.R.1	1,6
	Payment of tax balance for the previous year by individuals who do not submit audited accounts but are obligated to issue invoices, receipts, etc.		4
	Payment of Contribution to the Defence Fund on rental income received during the first half of the current year	I.R.601	2
July 31	Submission of Temporary Tax Assessment for the current year	I.R.6	3(a)
	Payment of first installment of tax based on the Temporary Tax Assessment		3(b)
August 1	Payment of the tax balance for the previous year	I.R.158	4
September 30	Payment of Immovable Property Tax	I.R.301 I.R.302	7
December 31	Submission of Company Income Tax Return (deadline extended by 3 months in case of electronic submission)	I.R.4	1,6
	Submission of Tax Return, accounts and additional information by individuals who submit audited accounts (deadline extended by 3 months in case of electronic submission)	I.R.1	1,6
	Submission of revised Temporary Tax Assessment for the current year, if considered necessary	I.R.6	3(a)
	Payment of second instalment of tax based on the Temporary Tax Assessment		3(b)
	Payment of Contribution to the Defence Fund on rental income received during the second half of the current year	I.R.601	2
By the end of the next month	Payment of tax deducted from employees emoluments	I.R.61	5
	Payment of Contribution to the Defence Fund withheld from dividends, interest and rents	I.R.601	2
	Payment of Social insurance deducted from employees emoluments	Y.K.A. 2-002	8
Within 30 days	Payment of Capital Gains Tax		7
Within 60 days	Obtaining a Tax Identification Code: Following the registration or incorporation of a company with the 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	I.R.162	9
Within 60 days period of such change	Notification of changes of companies details (i.e. registered office, activities, auditors etc.)	I.R.162	10
Four months from the month of the transaction	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

Penalties

1. Upon conviction for failure to submit a return, a person shall be liable to a fine not
exceeding €17 per day for as long as failure continues, or to imprisonment for a
term not exceeding 12 months, or both.
Any person who without any excuse omits any object of the tax from the return
shall be liable, on conviction to a fine up to €3.417 plus the tax due plus an
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. For rental income, interest at the rate of 4,5%* per annum is imposed from the first
day after the end of the six-month period (interest is calculated on a daily basis).
ln case of defence tax withheld on rents, dividends and interest income, interest
accrues as of the end of the month which follows the month to which it relates
(interest is calculated on a daily basis). In addition, in case of delay in payment, a
flat 5% penalty on the tax due is payable.
Late payment of outstanding Defence Tax which relates to rental period after
1.7.11, results in the imposition of a penalty equal to €100.
3(a) A penalty is imposed equal to 10% of the difference between the tax due per the
final assessment and the tax per the temporary assessment, if the temporary
taxable income is less than 75% of the taxable income per the final assessment.
3(b) If any instalment of the temporary tax assessment is not paid within 30 days from
the due date, interest at the rate of 4,5%* per annum is imposed. In addition, in
case delay in payment, a flat 5% penalty on the tax due is payable.
4. If the tax is not paid by the due date, interest is imposed at the rate of 4,5%* per
annum (interest is calculated on the basis of completed months).
An additional tax of 5% is imposed in the case where the due tax (as this is
declared on the tax return) is not paid within 30 days from the date the tax return
is due for filing. No penalty is imposed where the tax return is submitted timely,
the tax due based on the Tax Return is timely paid and the Inland Revenue makes
an assessment after the lapse of three years from the date of submission as
prescribed by the law.
In addition, any person omitting to pay the due tax by the due payment date is
liable to 5% penalty on the due tax.
5. Late payment results in the imposition of interest at 4,5%* per annum from the
due date and an additional penalty of 1% per month for as long as the delay
continues (interest is calculated on the basis of completed months).
6. Late submission results in the imposition of a penalty equal to €100. If the tax
return for a specific year is requested in writing by the tax office and this is not
submitted within the requested period, then a penalty of €200 is imposed for
every notice issued.
7. Interest is imposed at the rate of 4,5%* per annum from the due date.
Any person omitting to pay the due tax by the due payment date is liable to 5%
penalty on the due tax.
8. Late payment 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%
the amount due.
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. Late update of the books and records results in the imposition of a penalty equal to
€100 (on a quarterly basis).
12. Late issuance of invoices results in the 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. No stock taking results in the imposition of a penalty equal to €100.
14. Late submission of information requested by the Inland Revenue Department,
results in the imposition of a penalty equal to €200.
*The official rate set by the Minister of Finance applicable as of 1.1.14 is 4,5% (4,75% for 2013, 5% for 2011-2012; 5,35% for 2010; 8% for 2007-2009; previously 9%)

Tax Diary

Tax Diary

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