CYPRUS TAX RETURNS & REBATES DUE NOW
Full Cyprus tax returns are now due for 2015.
Personal Returns should have submission completed in May.
Self Employed and Employer Returns IR7 are due by end of May.
2015 Company Returns should then prepare for submission this year with annual returns and audit.
Key factors in the full return are the big swing in exchange rates used to assess Cyprus tax for the year end. Plus the reduction of Defence Savings Tax to 0% on Bank Interest and Dividends in mid-year means that many people will need to reclaim Savings tax paid at source in the UK and Cyprus in 2015.
Also it is important to ensure your bank in Cyprus stops charging you defence tax on bank interest. This is a new procedure and not automatically applied by all banks.
Because the new rate is 0%, it is possible to reclaim tax at source at 20% in the UK bank interest. You can only do this if you record the bank interest on your full Cyprus return.
Finally it is worthy to note from April 2016 UK investors will pay no UK tax on the first £5000 of dividends and bank interest. This is a radical change and should prompt a rethink by you of UK savings after the Budget changes are finalised.
Tax Saving Tip: Declare all savings in your Full year Cyprus tax return to reclaim 2015 savings taxed at source
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ProACT offer a Free Review of your Pension, Property, Tax Residence, Wills, Title deeds, property assets including identify inheritance tax savings. Keep up to date with the spring tax changes for expats living and working abroad.
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Sam Orgill Tel +357 26 819 424