Obligations of the Cyprus Company to the Tax Department
You must register your company with the Cyprus Tax Authorities and obtain a Tax id immediately after its incorporation date and must be submitted within 60 days from the date of the change
Your company is required to pay Corporate Tax and Special Contributions for Defense.
Temporary Tax Assessment – The temporary tax assessment form must be submitted on/or before 31st July of each year by all companies.
The temporary tax is payable in two equal installments. The first installment of the temporary tax is due on the 31st of July and the second on the 31st of December.
Final payment must be made before the 1st of August of the following year of assessment, to bring the total installment payments to the level of the actual liability due.
The Company’s Tax Returns (IR4) must be submitted no later than 31st March of the year following the year of assessment.
Special Contribution to Defense
All companies who are tax residents of Cyprus are required to pay a Special Contribution for Defense on the following types of income: dividends, interest, and rental income.
For rental income where the tenant is a Cyprus company or partnership, the Special contribution for defense on rental income is withheld at source and is payable at the end of the month following the month in which it was withheld.
For interest and dividends paid to Cyprus tax residents, any Special contribution for defense due is withheld at source and is payable at the end of the month following the month in which they were paid.
However, the Special contribution for defense due on dividends, interest, and rental income from abroad is payable in 6-month intervals on 30 June and 31 December each year.
Value Added Tax
- Companies that meet the criteria for VAT registration must register with the VAT Authorities within 30 days from the date at which the requirement to register exists. VAT returns are submitted on a quarterly basis.
- The VAT Information Exchange System (VIES Form) must be submitted every month for those companies that provide goods or services within the 15th day of the month following the month the transactions were made.
Criteria for registration for VAT purposes
- at the end of any month, the value of taxable supplies recorded in the last 12 months exceeds €15.600; or
- at any point in time, the value of taxable supplies is expected to exceed €15.600 in the next 30 days;
- provides services to a VAT-registered person within the European Union with a zero registration threshold;
- is involved in the acquisition of goods from other European Union member states (relates to persons who offer exempt supplies of goods and services or are non-profitable organizations)
- is involved in the acquisition of goods from other EU member states (relates to persons who offer exempt supplies of goods and services or are non-profitable organizations) with a registration threshold of €10.250;
- offers zero-rated supplies of goods or services;
- acquires a company on a going concern basis;
- a foreign taxable person makes distance sales with a registration threshold of €35.000.