Tax dairy

Date

Details of obligation

Tax Forms

Penalties

Beginning of each year

Every employee at the beginning of each year must complete the IR59 form and hand it over to his employer and employer calculate the PAYE deduction

IR59

 

End of the following month

Payment of Tax deducted (PAYE) from employees’ salaries for the previous month.

IR61

5

End of the following month

Payment of Social Insurance and other contributions deducted from employees’ salaries for the previous month

 

8

End of the following month

Payment of special contribution for defence deducted from dividends, interest or rents (when the tenant is a company, partnership, the state or local authority)  received for the previous month from Cyprus tax residents

IR601

2

31st July each year

Electronic submission of personal income tax returns by individuals for the previous year if their gross income is above €19.500

IR1

1,4,6

31st July each year

Submissions of employers return for the previous year

IR7

 

30 June each year

Submissions of income tax returns by individuals not preparing audited accounts (but are obligated to issue invoices, receipts, etc)

IR1

1,4,6

30 June each year

Payment of any outstanding amount due for the previous year by individuals via self-assessment in the case that they are not required to prepare audited accounts (but are obligated to issue invoices, receipts, etc.)

 

4

30 June each year

Payment of special contribution for defence for rental income received during the first six month of the year

IR601

2

1 August each year

Submission of temporary tax assessment for the current year.

IR6

3

1 August each year

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 and individuals preparing audited accounts.

IR158

4

30 September each year

Payment of the 2nd installment as per the temporary tax assessment for the current year.

 

3

30 September each year

Payment of immovable property tax for the current year.

 

7

31st March next year

Submission of Company’s tax returns for the previous year.

IR4

1,4,6

31 December each year

Submission of Self-Employed tax returns for the previous year.

IR1

1,4,6

31 December each year

Payment of the 3rd and last installment as per the temporary tax assessment for the current year.

 

3

31 December each year

Payment of special contribution for defence on rental income received during the last six month of the year

IR601

2

31 December each year

Submission of a revised temporary tax assessment for the current year (if necessary)

IR6

3

Tax Penalties:

1. A penalty of €17.09 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 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. Interest at the rate of 5%* per annum is imposed from the first day after the end of the six-month period (interest is calculated daily).

3. Failure to pay any installment of the temporary tax assessment by the due date:

· Interest at the rate of 5%* per annum was imposed (Interest is calculated for complete months). If no temporary tax assessment was submitted and an assessment is issued by the Inland Revenue, interest at 5%* per annum is payable on the overdue installment 

· In addition, 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 (interest is calculated for complete months)

4. Failure to pay tax by the due date:

· Interest was imposed at the rate of 5%*

· 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 and payment of the tax due is not made

5. Late payment results in the imposition of interest at 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 for complete months).

6. Late submission results in the imposition of penalty equal to €51

7. Late payment of immovable tax results in the imposition of interest at the rate of 5%* per annum from the due date.

8. 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.

* The official rate set by the Minister of Finance applicable as of 1.1.14 is 4.75%.

Our Firm

M. Kolokotronis + Associates personnel provides services for the last twenty years. The company’s main line of services is in the audit, bookkeeping, payroll, tax and business advisory for companies both local and international.

Our audit and tax experience range extensively in retail, investment, finance, construction, manufacturing, commission agents and services industry companies. 

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