Cyprus government has introduced a package of tax incentives to international film producers in order to consider our country for film-making.
Forms of Audiovisual Films compliant with the Scheme:
- Feature Films - Long Films
- Television film
- Television series or mini-series
- Digital or Analogue Animation
- Creative documentary
- Transmedia and Crossmedia productions
- Reality programmes which directly or indirectly promote Cyprus and its culture
We would like to remind you about the deadline of the second installment of temporary tax for the year 2018 that is the 31st of December 2018.
We would like to remind you that the application deadline for the settlement of overdue tax liabilities via the Government Gateway portal “Ariadne” is the 3rd of January 2019.
Taxes scheme summary
Taxes covered
The scheme covers unpaid tax liabilities taxes, which have been assessed by the Cyprus Tax Department, for all the years up to and together with the tax year 2015 and which relate to Income Taxes, Special Defense Contribution, Immovable Property Tax, Capital Gains Tax, Special Tax Contribution, Stamp Duties and VAT.
Monthly installments and respective relied granted
The Tax Office granting of relief of interest and penalties due on the unpaid tax liability is depended on the number of monthly instalments agreed as follows:
|
Number of installments |
% Relief on interest and penalties |
|
1 |
95% |
|
2-8 |
90% |
|
9-15 |
85% |
|
16-21 |
80% |
|
22-28 |
75% |
|
29-35 |
70% |
|
36-42 |
65% |
|
43-49 |
60% |
|
50-56 |
55% |
|
57-60 |
50% |
Eligible to apply
In order to be eligible to apply to the scheme, taxpayers (Individuals and companies) will need to submit their tax returns up to the tax year 2015 until the 31st of December 2018.
Furthermore, for the application to be accepted, at the time of applying, taxpayers should not have any other tax obligations (Direct or Indirect) that arose after the 31st of December 2015.
In the case that the Tax Department issues an assessment after the 3rd of January 2019 and will be related to a tax year before and up to 2015, then the provision in order the taxpayer to be eligible to apply is the same as above.
The settlement scheme ceases to apply in the event of any of the following:
- If a minimum of 3 installments fail to be settled;
- Is late to settle an installment over 3 months;
- Failure to settle a tax liability that refers to a period after the 31st of December 2015 or
- Where the applicant fails to follow submissions of tax returns on time.
We are at your disposal to assist you with for any further information or clarification you need.
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 2018.
Please note that a Temporary Tax Assessment of the estimated net taxable profit for the year 2018 (if any), should be submitted to the Tax Authorities by 31st of July 2018.
With reference to the above subject, we would like to remind you that all companies incorporated in Cyprus, irrespective of whether active or not or have assets or not are subject to a €350 levy per annum.
The last day of payment of the Annual Levy for the year 2018 is 30th June 2018.