Personal Income Tax Return

Individual Tax Return deadline 2020 2021 IBCCS TAX Cyprus

Individual Income Tax Return Submission Obligation

Individuals with gross income that falls under the criteria of Article 5 of the Income Tax Law (i.e., dividends, interest, and certain other income) must file a personal income tax return (Form T.D.1).

According to the decree issued on July 09, 2021, in the Republic’s official gazette, the Council of Ministers is exempting (again) individuals with Gross Annual Income lower than EUR 19.500.

The decree was issued to clarify the exemptions specified in the Assessment and Collection of Taxes law decree. The revisions were initially published to require all individuals to file their tax returns (IR1) from 2020 onwards.

Eventually, individuals with gross income of less than EUR 19.500 (the tax-free threshold) are not needed to file a personal income tax return, unless they received a notice/request for submission.

Deadlines for submission of income tax returns and the payment

On July 19, 2021, the Tax Portal enabled the electronic submission of declarations for 2020.

The deadlines for submitting tax returns and paying income tax for tax years is July 31 of the year following the tax year.

However, this year, the deadline for the submission has been extended until September 30, 2021, due to the fact that the new online platform through which declarations will be submitted was prepared with a delay. Furthermore, as a result of the prolonged crisis and severe economic conditions caused by COVID-19.

The deadline for the payment of any income tax which is due as per Form T.D.1 is also extended to September 30, 2021, with no penalties or interest imposed.

Electronic payment

Payment of the tax due must be made electronically using the unique number assigned when submitting the declaration. Tax Department allows electronic payment via JCC Smart Portal and Tax Portal.