The Council of Ministers issued a Decree on the 4th of February 2022 which states that individuals are exempted from the obligation to submit a personal income tax return for the tax year 2021 if their annual gross income is below €19.500.
To be reminded, in August 2020, Cyprus amended its Assessment and Collections of Taxes Law stated that from the tax year 2020, all individuals with annual gross income that falls under the provisions of the Article 5 of Income Tax Law, were obliged to submit personal tax return.
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Contact person
Stelios Ioannou
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+357 22 100 192
Managing Director
Every Cyprus tax resident company must declare, at least, the 70% of its accounting profits for the year 2019 by 31 December 2021 and pay the special contribution for defence of 17% and National Health Contribution of 2,65% by 31 January 2022.
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. Failure to distribute the aforesaid profits, 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 2019 by 31 December 2021, then the DDD provisions of the Special Contribution for the Defence Law will come into force.
The deemed dividend distribution provisions on the accounting profits for the tax year 2019 will be triggered on 31 December 2021. The said provisions will come into force in case a Cyprus tax resident company does not distribute at least 70% of its 2019 accounting profits by 31 December 2021.
The National Health Contribution should also be paid by 31 January 2022 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 T.D. 603.
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 1,75% 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
Extension to the deadline for the payment of 2021 Annual Levy
New Deadline: 31/12/2021
We would like to inform you that the Department of Registrar of Companies has announced that the deadline for payment of the 2021 Annual Levy by registered companies is extended to 31 December 2021.
Furthermore, the Department underlines that:
- Payments of the Annual Levy for the years 2018 and on may be carried out either through the JCCSMART website https://www.jccsmart.com or at the Department's cash registry.
- Payments for the previous years that is 2012 - 2017 will be made either at the Department's cash registry or through the website of the Department of Registrar of Companies "other electronic services" after first connecting to the Government Portal "Ariadne".
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
Extension to the deadline for the submission of Income tax returns of Companies (T.D.4) and self-employed persons whose turnover exceeds the amount of €70.000 and have obligation to prepare audited accounts (T.D.1) for the tax year 2019
New Deadline: 06/12/2021
We would like to inform you that the Minister of Finance has further extended the deadline for the income tax return of the companies, self-employed individuals whose turnover exceeds the amount of €70.000 and have the obligation to prepare audited accounts and for employees and pensioners whose income exceeds €19.500.
The deadline has been extended from 30 November 2021 to 6 December 2021.
It should be noted that there will be no imposition of administrative fines until 6 December 2021.
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
The Tax Department has further extended the deadline for the submission of DAC6 information
New Deadline: 31/01/2022
We would like to inform you that the Tax Department has announced that there will be no imposition of administrative fines for the overdue submission of DAC6 information that will be submitted by 31st of January 2022, in the following cases:
- Reportable Cross-Border Arrangements that have been made between the 25th of June 2018 and 30th of June 2020 and had to be submitted by 28th of February 2021.
- Reportable Cross-Border Arrangements that were implemented between 1st of July 2020 and 31st of December 2020 and had to be submitted by 31st of January 2021.
- Reportable Cross-Border Arrangements made between 1st of January 2021 and 1st of January 2022, that had to be submitted within 30 days from the date they were made available for implementation or were ready for implementation or the first step in the implementation has been made, whichever occurred first.
- Reportable Cross-Border Arrangements for which secondary intermediaries provided aid, assistance or advice, between 1st of January 2021 and 1st of January 2022 and had to submit information within 30 days beginning on the day after they provided aid, assistance or advice.
- The periodic reports for marketable arrangements.
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