After much delay and changing of laws the Cyprus tax portal finally opens for submission of 2022 full year tax returns in July 2023.
Just as 2023 Self Assessed Income Tax returns and payments become due from June and before the end of July.
2022 full year tax returns were due by the end of July 2023 but this submission deadline is now extended to the end of September 2023 with any balancing 2022 Cyprus tax to be paid by 2/10/2023.
Many people overlook that there is a complex system of self assessment taxes for income, property, health, dividends, interest royalties and corporation tax that require tax due for this year’s income, to be paid in the current year. If not paid during the limited window open online, July and December, any tax cannot be paid until next time, or until you are able to submit a final full year tax return.
If at least 75% of any tax liability is not paid in the current year then penalties could be automatically applied when the full year return is submitted. When the full year return is submitted the codes allow request payment automatically based upon your returns.
Tax paid at source in Cyprus or overseas can be offset against Cyprus tax due as long as a valid double tax agreement exists between the two countries.
If you did not pay self assessed tax in 2022, and missed the 2023 July window consider bringing your 2023 self assessment returns up to date in December.
Contact us at ProACT Partnership to review your 2023 self assessment requirements. See our contact details at the bottom of this article.
TAXING LIFE – Who needs to do a Cyprus tax payment or return?
If you have a tax payment for any income in Cyprus for 2023 and 2022 income, that is not taxed at source (eg from Cyprus employment payroll), then a full year returnand self assessment returns could be due.
You should make a Cyprus income tax return if you have:
Taxable income in Cyprus in excess of €19,500 a year 2023
The personal allowance of €19,500 is for income from employment or rental.
If you are self employed sole trader with any income
A Cyprus company requires corporation tax returns with audit
Cyprus tax residents with overseas worldwide taxable income
This could be a liability to health tax on worldwide income with no personal allowance – Health Tax should be applied to all income if paid in Cyprus being withheld and paid at source otherwise paid by self assessment.
If you are a Cyprus employee with employer paid social insurance at source this includes the health tax liability on your earned income and no further liability on this income arises.
If you are not certified Non-Dom you may have a liability to all these separate and special tax types without personal allowances and tax should be paid by self assessment:
- liability to Dividend tax at 17%
- liability to Interest tax at 30%
- liability to Royalty tax at 10%
IF YOU HAVE NON-DOM CERTIFICATE THESE TAXES ARE 0%
Property rental Income in Cyprus is taxable in two ways:
- as income tax with a flat rate 25% allowance against gross income
plus a second special tax at flat rate of 3% without personal allowance health tax chargeable to this income.
- If you sell Cyprus Property each registered owner of title or contract must have a full tax return submission history for each of the 6 years before sale.
In the event of death a full tax return history of the deceased is required before assets can be released and passed to the family and next of kin.
ProACT recommends that you plan ahead and avoid confusion, delay and penalties for not submitting the right Cyprus Tax return and payment on time.
By submitting tax returns each year you keep your income and tax affairs across borders and down generations simple and understandable.
For more information and a free review of your Cyprus Tax liability contact us at ProACT Partnership to review your tax in Cyprus UK & worldwide.