Overdue taxes settlement for the years 2016 to 2019

The Cyprus Parliament voted an amendment to the law that regulates the settlement of overdue taxes in relation to tax liabilities for the years 2016 up to 2019, which was published in the Official Gazette on 29th April 2021.

Both self-employed individuals and companies are covered, and the term ‘overdue taxes’ includes liabilities such as income tax, special defence contribution, immovable property tax, capital gains tax, stamp duty, and VAT.

Therefore, companies or self-employed individuals are eligible for the new scheme if they can prove a decrease in their annual turnover for the year 2020 (compared to 2019) by at least 25%, as a result of the restrictive measures taken during the pandemic.

Taxpayers may benefit from a relief of up to 95% of interest and penalties and a repayment plan with up to 60 monthly instalments but the arrangement will be cancelled if the taxpayer fails to pay any 5 instalments cumulatively.


Deadline extension for the submission of Tax Returns for the year 2020

An amendment to "The Assessment and Collection of Taxes Law" has been voted and published in the Official Gazette of the Republic on 20 April 2021.

In accordance with this amendment, the following deadlines have been extended to 30 September 2021:
> Electronic submission of the 2020 personal income tax return of individuals (Form TD1) and payment of any tax due as per the income tax return;
> Electronic submission of the 2020 employer’s tax return (Form TD7);
> Payment of the second instalment of the provisional tax for the tax year 2020
Link (GR)


Deadline for the payment of defence tax contribution (0623) and NHS/GESY (0723) in relation to the deemed distribution of dividends for the year 2018

The Tax Department informs that the deadline for the payment of defence tax contribution and NHS/GESY in relation to the deemed dividend distribution for the year 2018 is on the 30th of April 2021. 

Προθεσμία για την καταβολή έκτακτης αμυντικής εισφοράς (0623) και ΓεΣΥ (0723) αναφορικά με τη λογιζόμενη διανομή κερδών του έτους 2018

Το Τμήμα Φορολογίας υπενθυμίζει ότι η προθεσμία καταβολής έκτακτης αμυντικής εισφοράς και ΓεΣΥ αναφορικά με τη λογιζόμενη διανομή κερδών του έτους 2018 είναι η 30η Απριλίου 2021.
Link (GR)


Late Filing fee of late submission of Annual Return (HE32) extended to 1st June 2021

Following the announcement dated 18 December 2020 and the publication of the Companies (Amendment) Act of 2021 in the Official Gazette dated 7 April 2021 (Appendix I, Part I, No.4826), the Cyprus Registrar of Companies publishes the following:
> The date of implementation of late filing fees for overdue filing of Company Annual Returns (HE32) is extended to 1st June 2021.
> Penalty fee for late submission of forms HE2, HE4, HE12, HE57, AE5, AE6, AE8, are in force from 18 December 2020, as initially announced. 


Cyprus UBO Register for Companies (update)

On 16 March 2021, the Department of the Registrar of Companies announced the implementation of the interim system solution for the Beneficial Owner (BO) Register for companies and other legal entities. This is the result of the enactment of the amendment Law 13(I)/2021 which introduces changes to the “Prevention and Suppression of Money Laundering and Terrorist Financing Law” in order to be harmonized with the 5th European Directive (EU 2018/843).

All companies and other legal entities incorporated in the Republic of Cyprus are now obliged to identify and record onto the BO Register all relevant information about their ultimate beneficial persons who own or control them.

A six-month period has been granted for the submission of the relevant information into the interim system. 

For your information, the relevant Guidance for the interim system solution and other related information, as issued by the Registrar of Companies, can be found below.

Link (EN)


Extention of submission of tax return of Companies and Self-Employed with accounts for the year 2019

The Tax Department informs that the submission date of the Companies Tax Returns (IR4) and Self-Employed with accounts (IR1 ACC) for the year 2019, is extended to 30th of September 2021.

Παράταση Υποβολής Δήλωσης Εισοδήματος Εταιρειών και Αυτοεργοδοτουμένων με Λογ/σμούς για το έτος 2019

Το Τμήμα Φορολογίας ενημερώνει ότι, με βάση το, περί Βεβαιώσεως και Εισπράξεως Φόρων (Παράταση Προθεσμίας Υποβολής Φορολογικής Δήλωσης), Διάταγμα του 2021 (ΚΔΠ 111/2021), η ημερομηνία υποβολής της Δήλωσης Εισοδήματος Εταιρειών (ΤΦ 4), και Αυτοεργοδοτούμενων με Λογαριασμούς (ΤΦ 1ΛΟΓ) για το Φορολογικό Έτος 2019, παρατείνεται μέχρι την 30η Σεπτεμβρίου 2021.
Link (GR)


DAC6 – Extention in the imposition of penalties for delayed submission of information

The Tax Department informs that no penalties will be imposed on delayed submission of information DAC6, which will be submitted until the the 30th of June 2021, for the cases mentioned in the relevant decision linked below.

DAC6 – Παράταση στην επιβολή διοικητικών προστίμων για εκπρόθεσμη υποβολή πληροφόρησης

Το Τμήμα Φορολογίας ενημερώνει ότι δεν θα επιβληθούν διοικητικά πρόστιμα για εκπρόθεσμη υποβολή πληροφοριών DAC6, που θα υποβληθεί μέχρι την 30η Ιουνίου 2021, για τις περιπτώσεις που αναγράφονται στην πιο κάτω απόφαση.
Link (GR)


Cyprus Tax Authorities publish 10-year government bond yield rates for NID purposes

The Tax Department announces that the ten-year government bond yield rates as at 31.12.2020, which increased by 5%, represent the “reference rates” for the purposes of granting tax allowance on new capital as per article 9B of the Income Tax Law N.118(I)/2002, as amended, are published on the website of the Tax Department, under the section “Direct Taxation / Other Information”.

In brief, the reference rate for year 2021 is equal to the 10-year government bond yield as at 31 December 2020 of the country in which the new equity has been applied, increased by 5%. When applied as per the relevant provisions, the NID reference rate results in a notional interest expense that can reduce the relevant taxable profit. The NID is restricted to 80% of taxable profits generated by the application of the new equity.

Link (EN)

About Company

Paul & Co Audit Limited is an independent professional firm based in Nicosia, the Capital City of Cyprus, specialised in the fields of Accounting, Audit, Tax and Business Advisory Services.

Contact Details

  • 14 Strovolos Avenue, Myrtiana Court, Floor 2, Office 201, 2011 Nicosia, Cyprus
  • +357 22-783700
  • +357 22-783701
  • info@paulco.com.cy


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