TAX AND OTHER FILING REQUIREMENTS

LIST OF FILINGS REQUIRED BY A CYPRUS COMPANY

COMMISSIONER OF INCOME TAX

• End of each month
• Payment of employees' income tax deductions for the previous month (PAYE).

30 April

• Submission of Employer's Return (IR7 and IR7 Analysis)

This is a summary statement of employees' data, statement of PAYE lodgments for the year/period ending 31 December of the previous year and a summary of all employees' emoluments, tax and other deductions.

1 August

• Filing of provisional income tax declaration for the current year of assessment. The year of assessment corresponds to the calendar year. The provisional income tax liability is payable in three equal installments.

The provisional income tax declaration may be revised at any time before 31 December of the current year. The revised taxable income may only be reduced to an amount for which provisional income tax was already paid (i.e. the revision cannot result in a refund). Alternatively, the provisional taxable income may be revised upwardly without any limitations.

• Payment of first installment of provisional income tax.
• Filing of self-assessment declaration of final income tax liability for the previous year of assessment as determined by the audited financial statements.
• Payment of final income tax liability for the previous year of assessment.

30 September

• Payment of second installment of the provisional income tax liability

31 December

• Deadline for submission of the tax return for the previous year of assessment in the case where audited financial statements are prepared.
• Deadline for the revision of the provisional income tax declaration.
• Payment of third installment of provisional tax liability.

INTEREST AND PENALTIES

Employees Income Tax Liability (PAYE)

In case of default by an employer in paying tax withheld under PAYE, interest is charged at 8% per annum from the date it became due. In addition, a 1% charge is levied for each month of delay.

Company's income tax liability

• Interest on overdue tax is payable at 8% p.a.
• A 5% penalty is imposed on tax due if the relevant tax is not paid through self assessment within 13 months of the end of the tax year.
• A 10% penalty is imposed on the final net tax payable if the provisional taxable income is less than 75% of the final assessed.
• Tax overpaid is refunded with interest at 8% p.a.

Social Insurance (employers and employees)

• A penalty of 3% for each month that payment is overdue up to a limit of 15%.

REGISTRAR OF COMPANIES

Each calendar year the company needs to hold an Annual General Meeting (AGM) of its shareholders and no more than 15 months must elapse between the two AGMs. After each AGM, the company has no obligation to file with the registrar of companies an Annual Return which is dated 14 days after the date of the relevant AGM and needs to be filed with the registrar of companies within 42 days of the relevant AGM. There is an obligation to append to the Annual Return all the documents which laid before the AGM which would include the audited financial statements.

There is an obligation to notify the registrar of companies of all the changes in the structure of the company which include, non-exhaustively, the following:

1. increase in authorized share capital;
2. issuance of new share;
3. appointment, removal or change in the particulars of the directors or secretary
4. change of the registered address; and
5. transfer of shares