Cyprus Tax Declaration 2019 - UPDATED 18 JUNE 2020

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galexinda
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Re: Cyprus Tax Declaration from 2019

Post by galexinda » Thu Jun 18, 2020 11:40 am

THURSDAY 18 JUNE 2020 - IMPORTANT UPDATE

Cyprus Lawyers G Kouzalis LLC

Σας ενημερώνουμε ότι η υποβολή φορολογικής δήλωσης για τα έτος 2019 είναι υποχρεωτική μόνο για εισοδήματα που υπερβαίνουν τις €19,500 ετησίως.

We would like to inform you that the tax declaration for 2019 is compulsory only if the annual income is over €19,500.

We would like to inform you that the submission of a tax return for the year 2019 is mandatory only for income exceeding € 19,500 per year.

https://www.facebook.com/cypruslawyers. ... ?ref=br_rs

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Mrblobby
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Re: Cyprus Tax Declaration 2019 - UPDATED 18 JUNE 2020

Post by Mrblobby » Thu Jun 18, 2020 12:13 pm

Thanks galexinda , I thought 2019 was going to be the year everyone had to fill in a tax form regardless of income , obviously the law did not go through .

As I have been filling in tax forms for years on my low pension income , I will continue to do so .

A translation of the official letter .

The Tax Department informs that the date of submission of the 2019 Income Statement for: (a) employees and retirees (TF1) and (b) self-employed whose turnover does not exceed € 70,000 (TF1 self-employed), as well as the payment of the debtor tax, is extended until October 30, 2020 at 23:59 (KDP 247/2020).
It is pointed out that the obligation to submit an Income Statement (TF1) and (TF1) for the year 2019, arises ONLY when the Gross Annual Income exceeds € 19,500.
The above Statements will soon be available for electronic submission and TAXISnet users will receive a notification in their email (TAXISnet email address).
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trevnhil
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Re: Cyprus Tax Declaration 2019 - UPDATED 18 JUNE 2020

Post by trevnhil » Thu Jun 18, 2020 1:18 pm

All this is very strange and confusing.. Like others I have been sending in paper returns for years and then recently internet submissions.. Now it seems that we do not have to send them in... But personally now I am frightened that I will be penalised for suddenly stopping sending any return in...
A few years back I actually went to the Tax office and asked if I had to still keep filling the forms in.. Yes I was told, unless you want to De Register !!!!! I assumed that would mean I paid tax in the UK so I have kept sending in first paper returns and recently electronic ones.
Trev..

Galini
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Re: Cyprus Tax Declaration 2019 - UPDATED 18 JUNE 2020

Post by Galini » Fri Jun 19, 2020 9:33 am

trevnhil wrote:
Thu Jun 18, 2020 1:18 pm
All this is very strange and confusing.. Like others I have been sending in paper returns for years and then recently internet submissions.. Now it seems that we do not have to send them in... But personally now I am frightened that I will be penalised for suddenly stopping sending any return in...
A few years back I actually went to the Tax office and asked if I had to still keep filling the forms in.. Yes I was told, unless you want to De Register !!!!! I assumed that would mean I paid tax in the UK so I have kept sending in first paper returns and recently electronic ones.
I'm in the same situation as I had been received forms to complete since moving here in 2007 and then lately completing online. Income has never been near the tax threshold and I have never been told not to complete them. I will continue to do so as it's easier than trying to get a definitive answer from the tax office.

jeba
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Re: Cyprus Tax Declaration 2019 - UPDATED 18 JUNE 2020

Post by jeba » Fri Jun 19, 2020 10:56 am

trevnhil wrote:
Thu Jun 18, 2020 1:18 pm
All this is very strange and confusing..
Indeed! I thought as of this year everyone has to file a tax return for the preceding year, no matter whether or not your income was above the threshold or whether or not you´re tax exempt due to non-domiciled status. Is this no longer true?

galexinda
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Location: Paphos

Re: Cyprus Tax Declaration 2019 - UPDATED 18 JUNE 2020

Post by galexinda » Fri Jun 19, 2020 11:40 am

Indeed very confusing!

Below are just a few bits of advice given from the tax office and speaking to a couple of accountants on an informal basis over the past 18 months, bearing in mind I am not a property owner and was asking about my specific situation.

1. From 1 January 2019 every Cyprus resident will have to complete a Cyprus tax return regardless of income.
2. The Cyprus taxation system is one method of collecting GESY payments.
3. If you receive a UK State Pension you have to complete a Cyprus tax return because it is classed as an overseas income.
4. If registered in the UK for tax and your income is between the current personal tax level (20/21 tax year is up to £12,500) and the Cyprus personal level (€19,500) then it is beneficial to change to the Cyprus tax system.

Varky
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Re: Cyprus Tax Declaration 2019 - UPDATED 18 JUNE 2020

Post by Varky » Fri Jun 19, 2020 2:44 pm

Galexinda
Regarding point 3 I understood that if you are in receipt of a UK state pension then the UK government makes a contribution to any medical expenses you might incur under the GESY system and as such no contribution is required to GESY under the Cypriot Tax system. In fact I have a letter from the Cypriot MOF confirming that.

galexinda
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Re: Cyprus Tax Declaration 2019 - UPDATED 18 JUNE 2020

Post by galexinda » Fri Jun 19, 2020 4:30 pm

Yes, Varky you are correct in expanding Point 3 and the connection to GESY contributions. Thank you.

We are in that situation and our accountant asked us to supply a copy of the letter in order for her to complete the 2019 tax form.
Even though I do not receive the state pension as a Dependant I had a letter issued in my name because I am eligible for GESY healthcare.
In addition MEU3 form holders who are not state pensioners and those who receive interest and dividends also have their contributions to GESY collected via the tax system.

jeba
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Re: Cyprus Tax Declaration 2019 - UPDATED 18 JUNE 2020

Post by jeba » Wed Jul 08, 2020 2:41 pm

galexinda wrote:
Thu Sep 12, 2019 12:11 pm
''The current year will be the last year when it will not be mandatory for a Cypriot tax resident under the tax-free annual income limit of €19500 to file a tax return. From 2019 everyone will be required to submit a tax declaration'' (Article dated October 2018).
http://knews.kathimerini.com.cy/en/news ... -of-income


''The Cyprus government is pushing ahead with measures that will strengthen its ability to collect compulsory contributions to state revenue in a bid to tackle tax evasion. That’s why a relevant bill has already been drafted and sent to the Legal Services for a review, according to Phileleftheros.
One of the proposals makes it mandatory for all to file a tax return even if their income is not high enough to come under taxation brackets.
This law change obviously hasn´t been approved. This is the email I received from the tax authority:
You are not obliged to submit income tax return if your total revenue within a year, does not exceed €19500 and/or you have not contributed any amount to G.H.S.(General Health System) through Tax Department.


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Polly
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Re: Cyprus Tax Declaration 2019 - UPDATED 18 JUNE 2020

Post by Polly » Thu Sep 03, 2020 12:19 pm

Tax return is online although it seems to be called 'tax declaration' now and I can't see it in taxisnet but I could be looking in the wrong place.

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