What is the Tax Year in Cyprus for Corporate Taxes?
The tax year in Cyprus follows the calendar year, beginning on January 1st and ending on December 31st.
How to Obtain a Tax Identification Number (TIN) for a Cyprus Company
To apply for a Tax Identification Number (TIN) in Cyprus, companies must complete the registration process through the TFA Portal. Step-by-step instructions are available in the TIN Registration Guide.
Do I Need to File a Tax Return for My Cyprus Company?
Yes, all companies that are tax residents of Cyprus are required to file an annual tax return (TD4). This tax return must be based on audited or reviewed financial statements, which the company must prepare each year.
When Are Corporate Tax Returns Due in Cyprus?
Corporate tax returns in Cyprus must be filed electronically by March 31st of the second year following the tax year. For example, the tax return for the 2023 tax year is due by March 31, 2025. Please note that deadline extensions, if applicable, are communicated by the Cyprus Tax Department.
Who Can File a Tax Return for a Cyprus Company?
Only a licensed Cyprus auditor or tax consultant is authorized to file a tax return on behalf of a company. The auditor or tax consultant must confirm that the return accurately reflects the company’s financial statements and that the tax computations align with the Cyprus Tax Department’s guidelines.
What Information Does the Cyprus Tax Return Include?
The Cyprus tax return contains financial information derived from the company’s annual financial statements, along with calculations of taxable income and tax charges for the year. If a company incurs a tax loss, it may carry forward the loss for up to five years to offset future taxable profits.
Do Cyprus Companies Need to Submit Financial Statements with the Tax Return?
Companies in Cyprus are not required to submit financial statements along with their tax returns. However, they must provide financial statements to the tax authorities if requested by the Cyprus Tax Department.
When Are Cyprus Corporate Taxes Due?
In Cyprus, corporate taxes are paid through a system of temporary tax assessments. Companies that expect taxable income for the year must file an estimate of their taxable income by July 31st. This estimated tax payment is made in two installments: the first installment is due by July 31st and the second by December 31st of the same tax year.
If a company fails to make payments by these dates, a 5% penalty is imposed on the outstanding amount, and interest is charged at an annual rate of 1.75%, calculated on a monthly basis. However, if the installments are paid before August 31st and January 31st (for the July and December installments, respectively), no penalties or interest will be charged, as both penalties and interest are calculated on a full month’s basis.
Can a Company Revise its Taxable Income Estimate?
Yes, companies can revise their estimated taxable income at any point before December 31st of the tax year. If the revised taxable income estimate is higher than the initial declaration, interest will be charged on the difference between the revised and original amounts from the payment due date of each installment.
What Happens if There’s a Difference Between Temporary Assessment and Final Tax?
If there is a difference between the final tax amount and the temporary tax payments made, the company must pay the balance by August 1st of the year following the tax year. If the estimated taxable income falls below 75% of the actual taxable income, a 10% penalty will be applied to the difference between the temporary payments and the actual tax due. Additionally, if the final tax amount is unpaid by the due date, a 5% penalty is added, along with interest at a rate of 1.75% per year.
What if a Cyprus Company Overpays its Corporate Tax?
If a company overpays its tax, the excess amount will be refunded with interest at an annual rate of 1.75%, accruing from January 1st of the year following the tax year.
Need Help with Corporate Tax in Cyprus?
Navigating corporate tax regulations in Cyprus can be complex. Whether you need assistance with tax returns, financial statements, or temporary assessments, our team of experts is here to help. Contact us today to ensure your company remains compliant and maximizes tax efficiency.
