Tax Diaries

End of each month
PAYE deducted from employees’ salaries for the previous month.
Defense contribution deducted from dividends, interest or rent* paid for the previous month.
*Companies, partnerships, the government or any local authority that pay rent have an obligation to withhold special defense contribution on the amount of the rent paid (effective from 01 July 2011).

31 January
Submission of the deemed dividend distribution declaration for the tax year ended 2 years prior to the year under review.

31 March

Electronic submission of income tax return of individuals and companies preparing audited accounts for the year ended 15 months before.

Payment of the first installment of the special tax levy by credit institutions for the year. 

30 April
Submission of the personal tax returns for the previous year for salaried individuals whose gross income exceeds €19.500.
Submission of employers’ return and employees’ details for the previous year.
Payment of provisional tax by insurance companies (life business) for the first four months of the current year.

30 June
Submission of personal tax return of previous year by individuals who do not prepare audited accounts whose income includes; income from a trade/business, income from rents, income from royalties or income relating to trading goodwill  ((1) (2) ) and payment of tax via a self-assessment method.
    (1) Physical persons submit returns only when their gross income exceeds €19.500.
    (2) A physical person is obligated to submit audited financial statements if his/her turnover exceeds €70.000 annually.
Payment of tax balance for the previous year through self assessment by individuals who do not prepare audited accounts.
Payment of special contribution for defense in relation to rents, dividends or interest from sources outside Cyprus for the first half of the year.

Payment of the second installment of the special tax levy by credit institutions for the year.

31 July

Electronic submission of personal tax return for indivuals for previous year whose gross income exceeds Euro19.500

Electronic submission of employers' return and employees' details for previous year.

Submission of provissional tax assessment for current year and payment of the first instalment.

1 August

Payment of tax balance for previous year through self-assessment method by individuals and companies preparing audited accounts.

31 August
Payment of provisional tax by insurance companies (life business) for the second four months of the current year.

30 September
Payment of immovable property tax for the current year.

Electronic submission of personal tax return of previous year by individuals who do not prepare audited accounts if their gross income exceeds Euro19.500.

Payment of the third installment of the special tax levy by credit institutions for the year.

31 December
Submission of previous year’s tax returns for individuals and companies preparing audited accounts (see 2 above).

Payment of the second installment of current year’s provisional tax.

Payment of special contribution for defense in relation to rents, dividends or interest from sources outside Cyprus for the second half of the current year.

Payment of provisional tax by insurance companies (life business) for the last four months of the current year.

Payment of the fourth installment of the special tax levy by credit institutions for the year.

Electronic submission of tax returns
Individuals and companies that are preparing audited financial statements or persons that their tax return is submitted by a professional accountant may be obligated to submit their tax return electronically. In case that such electronic submission applies, the dateline is extended by three (3) months (this is effective from 01 July 2011).


Administrative penalties
Administrative penalties of €100 or €200 may be imposed depending on the specific case. Late submission of declarations or late submission of supporting documentation requested by the Commissioner of income tax may trigger these penalties. In case of late payment of the tax due, an additional penalty of 5% will be imposed on the unpaid tax (effective from 01 July 2011).

Note: The rate of interest for late payment of tax is determined by the Minister of Finance through a decree and it is applicable for the whole year. The rate for 2011 was set at 5%.