Cyprus Tax Declaration from 2019

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galexinda
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Cyprus Tax Declaration from 2019

Post by galexinda » 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.

The tax declaration by either an employee or a self-employed person will continue to be filed electronically with Finance Minister Harris Georgiades explaining that this will help tax authorities to get a clear picture of Cyprus’ total population''.
in-cyprus 11 September 2019 - Posted on Tala Community News

trevnhil
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Re: Cyprus Tax Declaration from 2019

Post by trevnhil » Thu Sep 12, 2019 12:35 pm

I must admit that i thought it was Mandatory for every one to file account starting This Year..
However at least we have two years of online accounts done, so all should be OK for the future
Trev..

galexinda
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Re: Cyprus Tax Declaration from 2019

Post by galexinda » Thu Sep 12, 2019 7:09 pm

Yes, Trev you are correct but apart from the above two articles I haven't found any more information about it especially as the tax system is one method of ensuring people pay the contributions to GESY.

darrow
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Re: Cyprus Tax Declaration from 2019

Post by darrow » Sun Oct 20, 2019 1:56 pm

It is on the mof gov website and PWC have an excellent online pdf

jeba
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Re: Cyprus Tax Declaration from 2019

Post by jeba » Mon Oct 21, 2019 7:05 am

darrow wrote:
Sun Oct 20, 2019 1:56 pm
It is on the mof gov website and PWC have an excellent online pdf
Could you give a link?

jeba
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Re: Cyprus Tax Declaration from 2019

Post by jeba » Mon Oct 21, 2019 7:08 am

When I had a look at the mof.gov.cy website I was surprised to see that they list income tax and "Special Defense Contribution" separately. I thought they were identical. Unfortunately, details seem to be available in Greek only (which I don´t have command of). Can anybody explain the difference?

jeba
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Re: Cyprus Tax Declaration from 2019

Post by jeba » Mon Oct 21, 2019 7:09 am

jeba wrote:
Mon Oct 21, 2019 7:08 am
When I had a look at the mof.gov.cy website I was surprised to see that they list income tax and "Special Defense Contribution" separately hover over direct taxation - legislation). I thought they were identical. Unfortunately, details seem to be available in Greek only (which I don´t have command of). Can anybody explain the difference?

galexinda
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Re: Cyprus Tax Declaration from 2019

Post by galexinda » Mon Oct 21, 2019 3:24 pm


jeba
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Re: Cyprus Tax Declaration from 2019

Post by jeba » Mon Oct 21, 2019 3:50 pm

galexinda wrote:
Mon Oct 21, 2019 3:24 pm
Maybe some more information here: https://www2.deloitte.com/content/dam/D ... _Noexp.pdf
Thank you. From that it seems that the defence contribution is charged on top of income tax (unless you´re non-domiciled). Haven´t known that.

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josef k
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Re: Cyprus Tax Declaration from 2019

Post by josef k » Mon Oct 21, 2019 5:41 pm

Looking at note 7 of the Deloitte leaflet, it says that we don't have to pay the Special Defence Contribution until we have been resident for 17 of the last 20 years preceding the year of the return.

trevnhil
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Re: Cyprus Tax Declaration from 2019

Post by trevnhil » Mon Oct 21, 2019 5:45 pm

But you do need to write something to your bank to let them know about this .. Or at least we did a year or two ago..
Trev..

jeba
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Re: Cyprus Tax Declaration from 2019

Post by jeba » Mon Oct 21, 2019 8:03 pm

josef k wrote:
Mon Oct 21, 2019 5:41 pm
Looking at note 7 of the Deloitte leaflet, it says that we don't have to pay the Special Defence Contribution until we have been resident for 17 of the last 20 years preceding the year of the return.
True, because that makes you a non-domiciled resident (unless your dad was Cypriot in which case you´d have to pay). You have to apply for that status though.

Edit: If you want to apply for non-domiciled status you need a copy of your father´s birth certificate.

chris&pam
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Re: Cyprus Tax Declaration from 2019

Post by chris&pam » Sun Dec 01, 2019 2:29 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.

The tax declaration by either an employee or a self-employed person will continue to be filed electronically with Finance Minister Harris Georgiades explaining that this will help tax authorities to get a clear picture of Cyprus’ total population''.
in-cyprus 11 September 2019 - Posted on Tala Community News
Ha! We have tried several times to get Pam registered for Income Tax (she has a TIC for IPT) but whenever we visit the tax office told it is not necessary as her income is only a UK State pension and below the 19500 tax fresh hold. We even took a completed tax application down there earlier this month and the girl again told us it is not necessary if income less then the 19500 euros and in fact refused to accept the form!!

Chris

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Mrblobby
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Re: Cyprus Tax Declaration from 2019

Post by Mrblobby » Sun Dec 01, 2019 4:52 pm

chris&pam wrote:
Sun Dec 01, 2019 2:29 pm

Ha! We have tried several times to get Pam registered for Income Tax (she has a TIC for IPT) but whenever we visit the tax office told it is not necessary as her income is only a UK State pension and below the 19500 tax fresh hold. We even took a completed tax application down there earlier this month and the girl again told us it is not necessary if income less then the 19500 euros and in fact refused to accept the form!!

Chris
When you say a tax application form do you mean a form DT Individual ?

It has to have a stamp on it which costs about 70 euros .

We are both registered and neither of us gets more than 19500 , but it was nine years ago when we registered.

https://assets.publishing.service.gov.u ... vidual.pdf

.

jeba
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Re: Cyprus Tax Declaration from 2019

Post by jeba » Sun Dec 01, 2019 6:24 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
Does that mean that next year you´ll have to file a tax return for income earned in 2019 or that in 2019 you´ll have to file for 2018? And does it apply to non-domiciled residents?

galexinda
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Re: Cyprus Tax Declaration from 2019

Post by galexinda » Sun Dec 01, 2019 7:17 pm

In 2020 you file for the 2019 tax year.

chris&pam - I have been resident here for many years and have no income. Every January I go to the Tax Office and ask if I should go on the system and was told that so long as my income was under the UK personal allowance for that year (currently £12,500 2019/2020) then there was no need to register.

However, the accountant who files my husband's tax returns told me recently that I would probably have to file a return in 2020, but to wait until the Tax Office made an official announcement in January 2020 - to do with paying GESY state healthcare contributions.

jeba
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Re: Cyprus Tax Declaration from 2019

Post by jeba » Sun Dec 01, 2019 9:15 pm

galexinda wrote:
Sun Dec 01, 2019 7:17 pm
In 2020 you file for the 2019 tax year.
Thanks. Do you happen to know whether you need to file even if you´re non-domiciled and haven´t joined GESY?

darrow
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Re: Cyprus Tax Declaration from 2019

Post by darrow » Mon Dec 02, 2019 12:05 pm

PWC give a detailed report on tax in Cyprus. ALL people in Cyprus with an income, domiciled or not, under or over the personal allowance have to fill in a return! It is to establish accountability for GESY purposes. UK have exemption but you have to apply for it, or they may
deduct it from ur bank! Apply to the tax office.

galexinda
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Re: Cyprus Tax Declaration from 2019

Post by galexinda » Mon Dec 02, 2019 12:44 pm


trevnhil
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Re: Cyprus Tax Declaration from 2019

Post by trevnhil » Mon Dec 02, 2019 1:01 pm

darrow wrote:
Mon Dec 02, 2019 12:05 pm
PWC give a detailed report on tax in Cyprus. ALL people in Cyprus with an income, domiciled or not, under or over the personal allowance have to fill in a return! It is to establish accountability for GESY purposes. UK have exemption but you have to apply for it, or they may
deduct it from ur bank! Apply to the tax office.
It was /is my understanding as well that 2019 was the first year that everyone had to fill in an online tax return, whether you are under or over the taxable allowance
Trev..

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