End of month payments
- Tax deductions are made from the employee’s salary (or PAYE) on monthly basis, at the end of each month.
- Special contribution payments, such as contribution for defence, are withdrawn from dividend payments, rents’ interest (if the tenant is a company, state/local authority or a partnership), which are made to the tax residents of Cyprus in the previous month.
- Tax payments are withdrawn in the preceding month from the payments made to non-Cyprus residents.
Tax Diary 2020: Timeline
31 January 2020 – TD623 form (declaration of deemed dividend distribution) submission for the year ended on 31 December 2017.
31 March 2020 – Submission of corporate tax return (TD4) for year 2018 and accounting period ending on 31 December 2018.
31 April 2020 – The first instalment of 2020 for the premium tax of life insurance companies.
30 June 2020 – First six months payment of 2020 on rents of special contribution for defence, if this tax not being withheld at source by tenant, as well as on dividends or interest from sources located outside Cyprus.
Personal income tax payment (2019) under the self-assessment by self-employed individuals not preparing audited financial statements. *2
31 July 2020 – Electronic submission of TD7 form; the form is submitted by every employer for the total payroll of 2019.
Submission of provisional income tax return for year 2020 and first instalment payment.
Electronic submission of:
- Personal income tax returns 2019
- Payment of personal income tax 2019 under the self-assessment of/by employees and pensioners, whose income does not include revenue from business, trade, dividends, interest, rents, royalties or any income relating to goodwill trading. *1
01 August 2020 – Payment of final corporate tax 2019 under self-assessment. Payment of personal income tax 2019 under the self-assessment of self-employed individuals preparing audited financial statements. *2
31 August 2020 – Payment of second installed of 2020 of premium tax for life insurance companies.
30 September 2020 – Electronic submission of personal tax returns 2019 for self-employed individuals (audited financial statements are not required). *2
31 December 2020 – Payment of:
- Second and last instalment of provisional tax 2020
- Special contribution for defence for the remainder six months of 2020 on rents (if this tax is not being retained at source by tenant, on dividends or interest from sources located outside Cyprus)
- Third and last instalment of premium tax for life insurance companies for 2020
The officially set interest rate by the Minister of Finance for all due amounts from 01 January 2020 is 1.75%.
2% for 2019
3.5% for 2017-2018
4% for 2015-2016
4.5% for 2014
4,75% for 2013
5% for years 2012 and 2011
5,35% for the year 2010
8% for the years 2007-2009
9% up to 31 December 2006
Penalties are charged depending on the circumstances.
*1 The submission of income tax return of physical persons is required only in the case of the gross taxable income surpassing €19,500.
*2 An individual is obliged to submit audited financial statements if his/her annual income from business, trade, dividends interest, royalties, rents and/or income relating to goodwill trading exceeds €70.000. Such an individual must be paying the 2019 income tax by 01 August 2020 and submitting the tax return electronically by 31 March 2021.