Cyprus Tax arrangements

[geoffreys]

I was lead to believe from press reports that all tax forms etc MUST now be done on-line. (difficult if you don't have a PC, Laptop, or Smart device!).
Anyway, I still received by post this month my Tax form TD51 2017 "Computation of Temporary Tax by Individuals" for this year, 2017.
So having completed it I trotted off down to the Dherynia/Paralimni Tax office to pay the first Installment due by 31st July.
(the second is due as usual by 31st Dec).
They are always helpful and friendly down there. The cashier said "good morning Mr Smith, nice to see you again" etc.
She has been working there for at least 5 years or so.
I was early so it wasn't busy and I asked her about this on-line stuff and she said paper forms would still be sent out for now.
I also asked her if many Brits are registered for tax? She said she had heard it said in the office that not many register and that this will be clamped down on soon as UK is leaving the EU.
I said I thought they should be clamping down anyway.
Geoff.

[Dominic]

We are registered for tax, and VAT.

[Mark]

Very quiet in the tax office on Tuesday when I paid my tax, only 1 person in front of me, but sadly, he was an agent with what looked like at least 40 forms with cheques attached!

After waiting for 30 minutes, he was asked to step aside, as a lengthy queue was now forming, I paid my tax, and he then proceeded with the rest of his payments!

I used a rate for 2017 of 1.18. What rate did others use?

[Jimgward]

A slight deviation....

Am I correct in saying, that someone resident in Cyprus, over a certain age, only pays 5% tax?

What is the age?

If, for talking sake, they owned a business in the UK that they liquidated/closed, would they then be liable for UK or Cyprus tax?

I know this needs specialist help, but just throwing it out there initially....

[WHL]

Best advise I ever had, was get yourself a good Accountant...

[PolemIan]

Four. And I can recommend a good accountant if needed.

[josef k]

A slight deviation....

Am I correct in saying, that someone resident in Cyprus, over a certain age, only pays 5% tax?

What is the age?

If, for talking sake, they owned a business in the UK that they liquidated/closed, would they then be liable for UK or Cyprus tax?

I know this needs specialist help, but just throwing it out there initially....

I'm not an expert, but this is my understanding.

The 5% rate is on everything over 3,420 euros, as opposed to the normal 20% on everything over 19,500 euros (note that this rate goes up to 25% and 30% as income increases). So you have to have a significant income to make the 5% worth using. It is down to you which rate you use and you can change this each year. However, you can only claim the 5% if your only income is pension income, bank etc interest and dividends. You can't work for money during the year in question, and if you do the rate switches to 20% for the whole income. There is no age qualification.

If you are registered for tax in Cyprus, then any income worldwide would be subject to Cyprus tax and not UK tax.

If you are not registered for tax in Cyprus then you are subject to tax by the UK (assuming you are a UK citizen).

It is impossible to be not registered for tax in either country due to the operation of the double taxation treaty

[Mark]

I paid tax at 5% on my occupational pension, this despite the fact that I was not in receipt of the U.K. state pension,
The U.K. provides Cyprus details of my OP at the end of every year.
The 5% is significantly lower than the tax the UK would charge on my income.
I pay no tax on my UK property as it is not rented out.

[Jimgward]

So, for talking sake (and many thanks everyone for the info) if a person was to pay tax in Cyprus and take a large dividend and pay 5% on it, even if they moved back to the UK, it is already taxed income? The UK could not subsequently tax it again?

[Robert]

It is my understanding that if you are of non-Cypriot domicile and have been in country for less than 17 years then tax on dividends and interest is 0%. After 17 years tax is still 0% but you then have to pay a Special Contribution for Defence which is 17% for dividends and 30% for interest.

I agree with the choice between 20% (rising again after EUR28,00) after EUR19,500 or a flat 5% after EUR3,420 on pensions.

Does anybody disagree with this?

I therefore disagree slightly with josef as I think his summary is just for pensions not dividends/interest.