The 2019 tax year is almost over and it is time to start thinking about 2020. We will outline below the tax filing and payment deadlines for 2020.
Remember that as from 1 January 2019 the social insurance contributions have been increased from 7,8% to 8,3% for employees and employers and from 14,6% to 15,6% for self-employed individuals.
Also, as from 1 March 2019 the General Healthcare System Law was introduced. Initially, the contributions are set at 1,70% for employees and pensioners, 1,85% for employers, 1,65% for the government, and 2,55% for self-employed individuals. As from 1 March 2020, the contributions will increase to 2,65% for employees and pensioners, 2,90% for employers, 4,70% for the government and 4% for self-employed.
Payments due dates by month
|End of each month||
PAYE for employees deducted from salaries relating to the previous month.
Social insurance and General Healthcare Contributions relating to salaries of the previous month.
Special Contribution for Defence to be withheld from Cyprus sourced dividends and interest for tax resident and domiciled individuals relating to previous month.
Special Contribution for Defence to be withheld from Cyprus sourced rent paid to tax resident and domiciled individuals (when tenant is a company, partnership, the state or local authority) relating to previous month.
|Within 30 days from the date of the agreement||
Payment of stamp duty
Submission of the deemed distribution declaration (Form TD 623) for the year ended 31 December 2017.
Submission of objections relating to tax assessments issued during December 2019.
Electronic submission of the 2017 corporation income tax return (Form TD4).
Electronic submission of the 2017 income tax return (Form TD1) for individuals preparing audited financial statements.
|30 April||Payment of the first instalment of premium tax for life insurance companies|
Payment of the 2019 personal income tax under a self-assessment method by individuals not preparing audited financial statements (employees and self-employed).
Payment of the 2020 special contribution for defence on rents, dividends or interest from sources outside Cyprus for the first 6 months of 2020.
Payment of the Annual Levy of €350 for the year 2020.
Electronic submission of the employers’ return for 2019 (Form TD7).
Electronic submission of the personal income tax return (Form TD1) for 2019 for all salaried individuals.
Submission of the 2020 temporary tax assessment and payment of the first instalment for both individuals and companies.
Settlement of the 2019 final corporation tax and personal tax for individuals preparing audited accounts.
Payment of the second instalment of premium tax for life insurance companies
Electronic submission of personal income tax return (Form TD1) for 2019 by self-employed individuals who do not prepare audited financial statements.
Payment of temporary tax – second and last instalment for 2020.
Payment of the 2020 special contribution for defence on rents, dividends or interest from sources outside Cyprus for the second 6 months of 2020.
Payment of the third instalment of premium tax for life insurance companies
|Interest and Penalties||
The official interest rate, as set by the Finance Minister, for all amounts due after 1 January 2019 is 2% (3,5% for 2018 and 2017, 4% for 2016 and 2015, 4,5% for 2014, 4,75% for 2013, 5% for years 2012 and 2011, 5,35% for the year 2010, 8% for the years 2007-2009 and 9% up to 31 December 2006).
In addition to the interest, two penalties of 5% each and additional tax of 5% may also be imposed depending on the circumstances. Also, a fixed penalty of €100 or €200 (depending on the circumstances) may be imposed on the late submission of Income Tax Returns.
(a) The personal income tax returns can only be submitted electronically. Manually submission is no longer permitted, except in cases of revised income tax returns.
(b) All individuals are now required to submit personal tax returns.
An individual is obliged to submit audited financial statements if his/her annual income from trade/business, rents, dividends interest, royalties or income relating to trading goodwill exceeds €70.000.
(c) In cases where the deadline for the submission of a tax return or payment of a tax or other liability falls on a Saturday or Sunday or Public holiday, the deadline for complying with these obligations is extended until the next business day
(d) Any person who is fraudulently delaying or omitting to pay taxes or
any person who delays payment of withheld taxes i.e. from salaries (such as PAYE and special contribution), payments to non-residents (such as films and royalties), as well as defence tax withheld from dividends, interest and rental income is guilty of a criminal offence and is liable to fines and imprisonment in the case of individuals. In the case of a company the directors, executive managers and accountants are also liable for penalties and imprisonment;
|Tax Due Dates for Payment of Social Insurance Contributions of Self-Employed|
|Months to which the contributions relate||
|January-March||10th of following May|
|April-June||10th of following August|
|July-September||10th of following November|
|October-December||10th of following February|