Amendments to the Assessment and Collection of Taxes Law

Nicosia, 8 September 2020

A law amending the Assessment and Collection of Taxes Law was enacted on 20 August 2020 in Cyprus. A summary of the main provisions enacted are below:

• Individuals with gross income not exceeding €19.500 will need to meet certain conditions in order to be exempt from the obligation to submit a personal income tax return.
• New deadlines for filing the tax returns and payment of taxes are provided.
• Taxpayers can submit a revised tax return within 3 years from the submission deadline of the relevant tax return and only if the revision arises: (i) as a result of claiming a relief, deduction or tax credit; or (ii) as a result of correcting an error; or (iii) for the purposes of being consistent with the provisions of the tax laws.
• The deadline for the electronic submission of the Employer’s return (TD7) is amended from the 31st of July of the year following the relevant tax year, to the 31st of May of the year following the relevant tax year.
• A Cyprus incorporated company that is not a tax resident of Cyprus, must inform the Tax Department of its intended activities in Cyprus within 60 days from its incorporation date. In addition, such companies have an obligation to submit an annual tax return, 15 months following the end of the tax year.
• The refund of any tax will be suspended in cases where the taxpayer has not submitted any VAT return due by the end of the tax year in which the examination for the refund began, until the taxpayer complies with this obligation.