The Tax Department issued an announcement informing taxpayers that the official deadline for submitting the Income Tax Return for Companies (TD4) and for Self-Employed individuals with an obligation to prepare accounts (TD1) for the tax year 2023, by persons who do not have an obligation to submit a Summary Information Table regarding Controlled Transactions, is 31 March 2025.
The announcement clarifies that, by decision of the Tax Commissioner, no monetary charge of €100 will be imposed if these returns are submitted by 30 June 2025. However, submissions made after 30 June 2025 will be subject to a monetary charge of €100 for late submission.
It is further noted in the announcement that, according to Regulatory Administrative Act (Κ.Δ.Π.) 383/2024, the deadline for submitting the Income Tax Return for the tax year 2023 by persons who, based on Article 33(10) of the Income Tax Law, have an obligation to submit a Summary Information Table in respect of Controlled Transactions, is 30 November 2025.
We remain at your disposal for anything you may need.
Contact person
Stelios Ioannou
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+357 22 100 192
Managing Director
User Rating: 5 / 5
Every Cyprus tax resident company must declare, at least, the 70% of its accounting profits for the year 2022 by 31 December 2024 and pay the special contribution for defence of 17% and National Health Contribution of 2,65% by 31 January 2025.
Deemed Dividend Distribution (DDD) provisions
According to the DDD provisions, a Cyprus tax resident company should distribute at least 70% of its accounting profits to its Cyprus tax resident shareholders, as dividends, within two years from the end of the tax year to which such profits relate. If the aforesaid profits (or part of them) were not distributed, then the relevant undistributed accounting profits would be considered as "deemed distributed" and the relevant Special Defence Contribution would need to be paid.
DDD provisions are applicable in cases that a Cyprus tax resident company has shareholders that are Cyprus tax residents and Cyprus domiciled and the Cyprus tax resident company has not distributed at least the 70% of its accounting profits for a specific tax year.
The DDD provisions also apply for National Health Contribution purposes in cases that a Cyprus tax resident company has ultimate shareholders Cyprus tax resident individuals (domicility is irrelevant).
Therefore, in the case that a Cyprus tax resident company has failed to distribute at least the 70% of its accounting profits for the year 2021 by 31 December 2024, then the DDD provisions of the Special Contribution for the Defence Law will come into force.
The National Health Contribution should also be paid by 31 January 2025 for the undistributed accounting profits.
Whereas a Cyprus tax resident company is ultimately owned by a non-Cyprus tax resident individual, the DDD provisions are not applicable.
The relevant form to be submitted by the end of the following month of the dividend declaration (actual or deemed) to the Tax Authorities is TD603.
In the case of late payment of the special contribution for defence and national health contributions then there will be an imposition of interest at the rate of 5% per annum and to a 5% penalty of the tax due. It should also be noted that an additional 5% penalty may be imposed in the case that the special contribution for defence remains unsettled two months after the above due dates. Also, there is a penalty of €100 if the T.D. 603 form is not submitted within the deadlines.
We remain at your disposal for anything you may need.
Contact person
Stelios Ioannou
This email address is being protected from spambots. You need JavaScript enabled to view it.
+357 22 100 192
Managing Director
User Rating: 5 / 5
We would like to remind you for the requirements of the Cyprus Tax Legislation (Assessment and Collection Law as amended in 2002, article 24) regarding the filing of temporary tax returns and relevant temporary tax payments for the year 2024.
Revision of the Temporary Assessment form
All companies may submit a revised declaration of their estimated taxable profit (upwards or downwards) before 31 December 2024. However, submitting a revised provisional tax declaration with an increased estimated taxable profit will result to a 5% interest payable on the difference between the initial and the revised estimated amount to be paid. The interest will be charged from the due date of payment of the 1st instalment.
Interest and Penalties
- An administrative penalty of 5% is imposed on each instalment if the company fails to pay the declared tax by the due dates stated above.
- Interest on an overdue instalment of the tax is calculated at an annual interest rate of 5%, on the basis of completed months.
- If the provisional tax declared is lower than the 75% of the actual tax payable for the year, then an additional 10% tax is imposed on the difference of the two.
If you require assistance in calculating your estimated taxable profit, then please provide us with an estimated income statement (detailed) for the year and we will provide you with a forecast income tax computation together with our advice as to whether you should proceed with the filing of a Temporary Tax return or not. It is important to note that companies with no taxable profits do not need to deal with the submission of this return.
For any further information, or if you would like us to proceed with assisting you with the above, please do not hesitate to contact us.
You could proceed with the payment of the provisional tax through JCC. Alternatively, we can take over of the above responsibility. The estimation of profits and transfer of funds in our client’s bank account should reach our office by the 18th of December 2024, otherwise we will consider it as an assumption by you of the responsibility to comply with this obligation.
Please bear in mind that our fees for the above will be €50 plus VAT (total €59,50).
Our clients' bank account details can be found below:
CosmoCo Ltd (Clients A/C)
Bank of Cyprus Public Ltd
Account Number: 357003572612
IBAN: CY18002001950000357003572612
Swift Code: BCYPCY2N
On the transfer details please indicate your Company name and "Temporary Tax 2024 - second instalment".
We remain at your disposal for anything you may need in connection with the above.
Contact person
Stelios Ioannou
This email address is being protected from spambots. You need JavaScript enabled to view it.
+357 22 100 192
Managing Director
User Rating: 5 / 5
The Tax Department has announced that the 2023 Personal Income Tax Return (TD1 form) is available for submission via TaxisNet.
Obligation for the submission applies to:
- Employees and pensioners whose gross annual income exceeds €19.500, and
- Self-employed individuals with an annual turnover that does not exceed the amount of €70.000 and who do not have the obligation to prepare audited financial statements.
Prerequisite for the submission of the tax return is the registration to the TaxisNet System.
We remain at your disposal for anything you may need in connection with the above.
Contact person
Stelios Ioannou
This email address is being protected from spambots. You need JavaScript enabled to view it.
+357 22 100 192
Managing Director