On 20 August 2020, Cyprus has published the Assessment and Collection of Taxes (Amendments) (No. 3) Law in the Official Gazette. The Amending Act introduces provisions aimed, among other things, at improving tax compliance and giving the Tax Commissioner additional powers in relation to tax collection.
The main provisions of the amending law are summarized below.
- From tax year 2020 onwards, all individuals with gross income that falls under the provisions of Article 5 of the Income Tax Law are required to submit a personal income tax return, with the removal of the general exemption where gross income does not exceed EUR 19,500.
- Taxpayers can submit a revised tax return for tax years 2020 onwards within three years from the deadline for submitting the relevant original tax return. A revised tax return cannot be submitted during a tax examination or a tax audit of the relevant tax return. In case of the submission deadline for a revised return has already passed, may be submitted within 6 months of the entry into force of the amendment law (i.e., by 20 February 2021)
- The deadline for company income tax returns (TD4) is set at 31 March of the second year following the tax year.
- Taxpayers required to submit returns by 31 March of the second year following the tax year are required to pay the tax due by 1 August of the year following the tax year (i.e., companies and self-employed individuals);
- Taxpayers must informs the Tax Department of any changes to the information they have submitted upon tax registration within 60 days from the date of change.
The amendment law generally entered into force on 20 August 2020.
