interest – N. Constantinou & Co Audit Ltd | Cyprus Audit, Tax, Company incorporation, Consulting https://www.nconstantinou.com Cyprus Audit, Tax, Company incorporation, Consulting, Accounting Thu, 10 Sep 2020 11:12:16 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.5 https://www.nconstantinou.com/wp-content/uploads/2020/01/cropped-Logo-32x32.jpg interest – N. Constantinou & Co Audit Ltd | Cyprus Audit, Tax, Company incorporation, Consulting https://www.nconstantinou.com 32 32 Reduction of SDC rate applicable on interest income received by Cyprus tax resident domiciled individuals from corporate bonds https://www.nconstantinou.com/reduction-of-sdc-rate-applicable-on-interest-income-received-by-cyprus-tax-resident-domiciled-individuals-from-corporate-bonds/ Sun, 19 Jan 2020 09:39:00 +0000 http://www.nconstantinou.com/?p=908 On 26 June 2019 an amendment to the Special Defence Contribution (SDC) Law was published in the Official Government Gazette.

Based on the amendment the SDC rate applicable on interest income received by Cyprus tax resident domiciled individuals from corporate bonds is reduced from 30% to 3%.

The reduced rate is now in line with the SDC rate applicable on interest earned from Government bonds.

Cyprus tax resident non-domiciled individuals are not affected by the above change and are not subject to any SDC.

The amendment is applicable from 26 June 2019 onwards.

]]> Adoption of rules against tax avoidance practices https://www.nconstantinou.com/adoption-of-rules-against-tax-avoidance-practices/ Sun, 19 Jan 2020 09:15:55 +0000 http://www.nconstantinou.com/?p=906 On 5 April 2019, the House of Representatives voted into law the provisions of the European Council Directive for the adoption of rules against tax avoidance practices that directly affect the functioning of the internal market (known as Anti-Tax AvoidanceDirective – ATAD).

The anti-tax avoidance measures which were voted are:

  1. Interest limitation rule
  2. General anti-abuse rule
  3. Controlled Foreign Company rule
  4. Exit taxation
  5. Rule to tackle hybrid mismatches

The application dates for the above are:

1 January 2019: Interest limitation rule, general anti-abuse
rule and controlled foreign companies rule.

1 January 2020: Exit taxation and rule to tackle hybrid
mismatches (reverse hybrid rules shall apply by 1 January 2022).

]]> Due dates for interest, additional taxes and penalties https://www.nconstantinou.com/due-dates-for-interest-additional-taxes-and-penalties/ Mon, 24 Jul 2017 09:03:06 +0000 http://www.nconstantinou.com/?p=787
  • Employees
    • Due date for submission of income tax return: 30/04 of the following year
    • Due date for submission of income tax return via TAXISNET: 31/07 of the following year (for 2016, the deadline has been extended to 30/09/2017)
    • Due date for payment of tax due: 30/06 of the following year
    • 5% extra tax for late payment of the due tax: 01/08 of the following year
    • 5% penalty for late payment of the due tax: 01/08 of the following year
  • Self-Employed who do not prepare audited financial statements (turnover below €70,000)
    • Due date for submission of income tax return: 30/06 of the following year
    • Due date for the submission of income tax return via TAXISNET: 30/09 of the following year
    • Due date for payment of tax due: 30/06 of the following year
    • 5% extra tax for late payment of the due tax: 01/08 of the following year
    • 5% extra tax for the late payment of the due tax if the return was submitted through TAXISNET: 01/11 of the following year
    • 5% penalty for late payment of the tax due: 01/08 of the following year
  • Self -Employed who prepare audited financial statements (turnover exceeding €70,000)
    • Due date for submission of income tax return: 31/03 of the second following year
    • Due date for payment of the tax due: 01/08 of the following year
    • 5% extra tax for late payment of the due tax: 01/05 of the second following year
    • 5% penalty for late payment of the due tax: 01/09 of the following year
  • Company
    • Due date for submission of income tax return: 31/03 of the second following year
    • Due date for payment of the tax due: 01/08 of the following year
    • 5% extra tax for late payment of the due tax: 01/05 of the second following year
    • 5% penalty for late payment of the due tax: 01/09 of the following year

    •  

    • NOTES
      • For the tax year 2017 onwards, all returns should be submitted through TAXISNET
      • Effective from 14 July 2017, an additional penalty of 5% on the tax due will be imposed if the omission continues more than 2 months from the payment deadline
      • The 5% extra tax for late payment of the tax due is subject to the relevant interest rate for late payment
      • The interest rates charged on the due taxes are:
      • YEAR Percentage
        Up to 31/12/2006 9,00%
        1/1/2007 -31/12/2009 8,00%
        1/1/2010-31/12/2010 5,35%
        From 1/1/2011 5,00%
        From 1/1/2013 4,75%
        From 1/1/2014 4,50%
        From 1/1/2015 4,00%
        From 1/1/2017 3,50%
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