Compulsory submission of tax returns
Up until 2019, individuals with gross taxable income not exceeding €19.500, were not required to submit a tax return in Cyprus.
From tax year 2020 almost all individuals earning taxable income, irrespective of the amount, will have the obligation to submit a personal income tax return, unless they meet certain conditions.
We are expecting a decree to be issued by the tax department defining conditions for exemptions.
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Submission of revised income tax returns
Until now the matter of the revised tax return was not officially regulated.
Following the amendment, a revised tax return can be submitted within 3 years from the submission deadline of the relevant tax return.
Tax returns for which the submission deadline for a revised return has already passed, will need to be submitted by 19 February 2021.
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Calculation of interest on late payments of Special Defence Contribution, Capital Gains Tax and Immovable Property Tax
Change to the way interest is calculated for late payments of Special Defence Contribution, Capital Gains Tax and Immovable Property Tax.
Interest should now be calculated based on completed months for which the payment of the tax is delayed, not on a daily basis.
This applies to taxes due on or after 1 September 2020.
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Electronic payment of all taxes
As from 1 September 2020, Tax Department allows electronic payment of all taxes due, including overdue taxes, via two means – Tax Portal & JCC Smart Portal.
Payments of taxes on time can be implemented via both portals, whereas payments for overdue taxes can only be made via the Tax Portal.
Physical payments at the cashiers will be accepted by exception only in cases when online payment cannot ne carried out, such as payments for Immovable Property Taxes.
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Non-refund of tax/VAT balance
Taxpayers in a refundable position will not be eligible for a refund if they failed to file their tax returns in accordance with the deadlines set in the relevant laws.
Requests for refunds in such cases will be rejected and once a taxpayer is up to date with the filing of their tax returns, a new request should be submitted.
