Cyprus Tax Declaration 2019 - UPDATED 18 JUNE 2020

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galexinda
Posts: 2294
Joined: Wed Dec 28, 2016 9:47 am
Location: Paphos

Re: Cyprus Tax Declaration 2019 - UPDATED 18 JUNE 2020

Post by galexinda »

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
Posts: 1189
Joined: Sat Mar 25, 2017 11:44 am
Location: Anarita

Re: Cyprus Tax Declaration 2019 - UPDATED 18 JUNE 2020

Post by Varky »

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
Posts: 2294
Joined: Wed Dec 28, 2016 9:47 am
Location: Paphos

Re: Cyprus Tax Declaration 2019 - UPDATED 18 JUNE 2020

Post by galexinda »

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
Posts: 1495
Joined: Fri Jan 27, 2017 8:38 pm

Re: Cyprus Tax Declaration 2019 - UPDATED 18 JUNE 2020

Post by jeba »

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.


Υπηρεσία TAXISnet Άμεσης Φορολογίας

TAXISnet Service For Direct Taxation
Polly
Posts: 137
Joined: Fri Dec 30, 2016 4:37 pm

Re: Cyprus Tax Declaration 2019 - UPDATED 18 JUNE 2020

Post by Polly »

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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