tax due – N. Constantinou & Co Audit Ltd | Cyprus Audit, Tax, Company incorporation, Consulting https://www.nconstantinou.com Cyprus Audit, Tax, Company incorporation, Consulting, Accounting Sun, 19 Jan 2020 10:13:57 +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 tax due – N. Constantinou & Co Audit Ltd | Cyprus Audit, Tax, Company incorporation, Consulting https://www.nconstantinou.com 32 32 Deemed Dividend Distribution as at 31 December 2019 https://www.nconstantinou.com/deemed-dividend-distribution-as-at-31-december-2019/ Sun, 19 Jan 2020 10:13:57 +0000 http://www.nconstantinou.com/?p=914 The Deemed Dividend Distribution provisions apply to the profits of Cypriot tax resident companies that are attributable directly to Cypriot tax residents and domiciled shareholders only.

Non-Cyprus and non-domiciled Cyprus tax residents are not affected by the provisions of Deemed Dividend Distribution.

The Deemed Dividend Distribution provisions apply where a Cypriot tax resident company has not distributed at least 70% of its after tax profits, as adjusted, within two years from the end of the tax year to which such profits relate. In such a case, the undistributed part of such profits is subject to Special Defence Contribution at 17%.

Therefore, companies with accounting profits for tax year 2017 that fall within the Deemed Dividend Distribution provisions must declare the appropriate amount of dividend until 31 December 2019 and pay the relevant Special Defence Contribution via JCC smart (www.jccsmart.com) by the end of the following month that such dividend was declared, with the latest date being 31 January 2020. 

If no actual dividend distribution is made, the relevant undistributed accounting profits (up to the 70% threshold) would be considered as deemed distributed and the relevant Special Defence Contributio would need to be paid by 31 January 2020 via JCC smart.

It should be noted that as from 1 March 2019, the distribution of either an actual dividend or a deemed dividend, to Cypriot tax resident shareholders, both domiciled and non-domiciled, is also subject to contributions to the General Healthcare Scheme at 1,7%.

Late payment of the Special Defence Contribution and General Healthcare System due will be subject to a penalty of 5% on the tax due and interest at the current rate of 2% per annum. An additional penalty of 5% on the tax due may be imposed if the tax remains unpaid two months after the above due dates.

]]> Amendment to the Law regulating the settlement of overdue taxes https://www.nconstantinou.com/amendment-to-the-law-regulating-the-settlement-of-overdue-taxes/ Wed, 03 Jan 2018 13:34:58 +0000 http://www.nconstantinou.com/?p=806 The House of Representatives has voted an amendment to the Law regulating the settlement of overdue taxes, effective from 13 November 2017.

The amendment provides as follows:

  • Where the total tax due does not exceed €500, an amount of €100 to be written off, and
  • Where the total tax due does not exceed €100, the whole amount to be written off.

The eligible taxpayers (individuals and companies) are not required to submit an application for the write-off as the write-off will be applied automatically by the Tax Department and inform the taxpayers accordingly.

]]> 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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