The Tax Year Ends, But in Cyprus, It’s Only the Beginning!
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Happy New Year and with that comes the start of a new tax year in Cyprus.
Steady
Cyprus’s tax system has one key appeal to expats- it is consistent, and nothing changes greatly from year to year.
0% tax for non-doms on dividends and interest.
Remittance basis of income tax payments for people working remotely from Cyprus.
Flat rate corporation tax of 12.5% at half the rate of business tax rates in the UK.
While the UK Portugal, Spain and other countries chop and change tax rates for expats, Cyprus stays consistent.
Who completes a tax return in Cyprus
Tax returns become due from January for all entities, individuals, companies, sole traders, property landlords and trusts.
Individuals in the past have only been required to do an income tax return if Cyprus’ income was over around 20,000 euros, or if they sell property or if they die.
Property landlords with rental income earning should tax return each year.
Sole traders or contractors all have to do a tax return and may need an audit depending upon turnover.
All companies need a tax return and audit.
Trusts only need a tax return if the activity receives income or gains. Fixed asset trusts holding property and investments not so.
—> Read more about who needs to submit a tax return in Cyprus
Tax keeps returning
The Cyprus tax return deadline is not so consistent are can be required between 4 and 15 months after the year-end, some times time frames could be extended.
Have in mind that this year’s tax return is for last year.
If you have tax to pay this year it is due in July and December installments.
Employers have social insurance and employers’ tax returns to do with payroll each quarter.
VAT returns are also a quarterly process for any business company or self-employed contractor.
Who benefits
Exchange of information continues to extend its reach with individuals and businesses being required to report and share tax numbers with banks and financially regulated organisations.
In addition Property, Business and Trusts need to have the beneficial owner of income and capital reported and updated each year.
Let’s get started
If you think you need a Cyprus tax return then learn more about our tax return service which can be purchased for just £30 per month or £360 for the year.
Existing clients who aren’t on a subscription can renew their services and submit income and gains information securely by emailing info@proactpartnership.com.
New clients can join us using our Annual Tax Service as a basis for tax advice and a tax report and return.
If you are not sure ProACT offer a Free Consultant Review of your situation which you could book online.
Need help & Guidance?
We offer a free review of your situation to determine best way forward, alternatively you can contact us.
