December 2023
Deemed Divident Distribution that relates to the tax year 2021
We would like to remind you of the deemed dividend distribution (DDD) provisions of the Special Contribution for the Defence Law that relate to the tax year 2021. Profits subject to deemed dividend distribution In accordance with the legislation, a company which is a tax resident of Cyprus, will be deemed to have distributed as dividend 70% of its accounting profits arising in 2021. The deemed dividend will be considered as having been distributed two years from the end of the year it relates to. Therefore for 2021 the date of deemed distribution is 31 December 2023 (Last date of payment 30th January 2024). The deemed distribution provisions are not applicable to the...
Provisional Tax – Προσωρινή Φορολογία
We would like to remind you that the payment deadline for the 2nd provisional tax instalment for tax year 2023 is the 31st of December 2023 (there is 30 days period for the payment until 30 January). Obligation for provisional tax payment The following persons have an obligation to pay provisional tax, based on their expected annual taxable income for tax year 2023: Individuals with taxable income other than salaries, pensions, dividends and interest, and Companies with taxable income. Payment of provisional tax The provisional tax is calculated by applying the relevant tax rates (depending on whether the taxpayer is an individual or a company) on the expected taxable income for the year, after taking into account any overseas...
Holiday Wishes
Sending our warmest Thoughts and best Wishes for a Wonderful Holiday Season and a Successful and Glorious Happy New Year! From all of us at ACUTE ADVISORY SERVICES LTD!!!
Social Insurance Contribution Rates
As of 1st January 2024, the Social Insurance Contribution rates for each of the employer and the employee are increased by 0.5% and for self-employed individuals by 1%. The below table summarizes the contribution rates which are applicable for the tax year 2024: % Self-employed individuals 16,6 Employee’s contribution 8,8 Employer’s contribution 8,8 Employer’s contribution to the Redundancy Fund 1,2 Employer’s contribution to the Human Resource Development Authority Fund 0,5 Employer’s contribution to the Social Cohesion Fund 2 Social Cohesion Fund An employer is liable to pay a social cohesion fund contribution of 2% on the amount of the emoluments of his employees (without any restriction as to the amount of the emoluments). Maximum limit of emoluments As of the beginning of 2024 the below maximum amount of emoluments are applicable...October 2023
Correction of VAT returns via TFA
On 21 September 2023, the Cyprus Tax Department announced that taxpayers may correct their VAT returns via the Tax For All (TFA) online platform. Corrections to the VAT returns can be made as follows: Until the deadline for ANY boxes of the VAT return (i.e. Box 1 to 11B) After the deadline ONLY for boxes of the VAT return that are not related to the output/input VAT (i.e. Box 6 to 11B) This ability to correct VAT returns concerns only the VAT returns submitted via TFA with submission date after the 27th of March 2023. Corrections to VAT returns that have been submitted and their deadline date was prior to the 27th of March 2023, can be submitted to the Tax Department...September 2023
PERSONAL TAX RETURN FOR 2022 – ΥΠΟΒΟΛΗ ΔΗΛΩΣΗΣ ΕΙΣΟΔΗΜΑΤΟΣ ΑΤΟΜΟΥ ΓΙΑ ΤΟ ΕΤΟΣ 2022
Please find attached the announcements from the Tax Department. Τhe last date for timely submission of the 2022 Personal Tax Return and payment of the tax due is 2 October 2023. The obligation to submit a Personal Tax Return for the year 2022 is for Employees, Pensioners and Self-Employed whose Gross Total Income for the year 2022 exceeds the amount of €19,500. They have been posted to the TAXISnet system, the Company Income Tax Return (TΕ4) and Self-Employed with Accounts (TΕ1 Account) for the Tax year 2022 which are available for submission. The deadline for the declarations is March 31, 2024. ACUTE ADVISORY SERVICES TEAM (Ακολουθεί κείμενο στα ελληνικά) H τελευταία ημερομηνία εμπρόθεσμης υποβολής της Δήλωσης Εισοδήματος...July 2023
PROVISIONAL TAX
We would like to remind you that the payment deadline for the 1st provisional tax instalment for tax year 2023 is the 31st of July 2023. Obligation for provisional tax payment The following persons have an obligation to pay provisional tax, based on their expected annual taxable income for tax year 2023: Individuals with taxable income other than salaries, pensions, dividends and interest, and Companies with taxable income. Payment of provisional tax The provisional tax is calculated by applying the relevant tax rates (depending on whether the taxpayer is an individual or a company) on the expected taxable income for the year, after taking into account any overseas tax credits. It is payable in two equal instalments, as follows: 1st...
DEFENCE TAX FOR RENT PAYMENTS
The Parliament recently amended the legislation governing the Defence tax for rent allowing the tax to be paid in two installments per year, instead of monthly. This contribution is 3% on 75% of the rent. Based on the current legislation, persons who pay rent have an obligation to withhold from the amount of the rent defense tax and to pay it to the Tax Department within the month following the month in which the withholding is made. With the said amendment, the defense tax deducted from the rents will be payable in two half-monthly installments instead of the earlier monthly payment. This initiative resulted from the recognition of the fact that the obligation to...
