Φόρος Εισοδήματος

• 2^η δόση προσωρινής Φορολογίας (200) για το έτος 2023

Έκτακτη Αμυντική Εισφορά (ΕΑΕ) και Γενικό Σχέδιο Υγείας (ΓεΣΥ)

1. Πληρωμές που αφορούν παρακράτηση

• ΕΑΕ (0614) και ΓεΣΥ (0714) που παρακρατήθηκαν από ενοίκια που πληρώθηκαν το β’ εξάμηνο 2023
•  ΕΑΕ (0602) και ΓεΣΥ (0702) που παρακρατήθηκαν από τόκους τον Δεκέμβριο 2023
• ΕΑΕ (0603) και ΓεΣΥ (0703) που παρακρατηθηκαν από μερίσματα τα οποία εκδόθηκαν τον Δεκέμβριο 2023
• ΕΑΕ (0623) και ΓεΣΥ (0723) σε λογιζόμενη διανομή μερίσματος για τα κέρδη του έτους 2021

2. Πληρωμές που αφορούν αυτοφορολογία

• ΕΑΕ (0604) και ΓεΣΥ (0704) για ενοίκια β’ εξαμήνου 2023
• ΕΑΕ (0612) και ΓεΣΥ (0712) για τόκους που εισπράχθηκαν χωρίς παρακράτηση στην πηγή τον Δεκέμβριο 2023

Σε περίπτωση εκπρόθεσμης πληρωμής του οφειλόμενου φόρου θα προκύπτει τόκος και χρηματικές επιβαρύνσεις. Ο ετήσιος τόκος υπολογίζεται με βάση τους συμπληρωμένους  μήνες για τους οποίους καθυστερεί η καταβολή φόρου.

Αναφέρουμε επίσης ότι βάση Διατάγματος Κ.Δ.Π. 416/2023, το Ενιαίο Δημόσιο Επιτόκιο Υπερημερίας από 1.1.2024 είναι 5% (2023: 2,25%).

Υπενθυμίζουμε επίσης για την έγκαιρη υποβολή της Δήλωσης Παρακράτησης ΕΑΕ και ΓεΣΥ σε λογιζόμενη διανομή μερίσματος (ΤΦ623) για τα κέρδη του έτους 2021, μέχρι την 31^η Ιανουαρίου 2024. Μη έγκαιρη υποβολή υπόκειται σε διοικητικό πρόστιμο €100.

Για οποιαδήποτε διευκρίνηση επικοινωνήστε μαζί μας.

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(if this has not been withheld at source by the tenant, through Tax Form T.F.601), foreign dividends and interest.

1. Legal entities are subject to extraordinary defense levy if they are tax residents of Cyprus. Before July 16, 2015, natural persons were subject to an extraordinary defense levy if they were tax residents of Cyprus. As of July 16, 2015, of course persons are subject to defense levy if they are both tax residents of Cyprus and if they are “domiciled”.

A natural person is “domiciled” in Cyprus for the purposes of the Emergency Defense Contribution, if he has the residence of origin in Cyprus, as specified in the Law on Wills and Succession (with some exceptions) or if it is tax resident in Cyprus for at least 17 of the 20 years immediately preceding the relevant tax year. Provisions for tax avoidance apply.

2. Dividends received by a company that is a tax resident of Cyprus from another company that is a tax resident of Cyprus, are excluded (except for dividends paid indirectly after 4 years from the end of the year in which the profits from which the said dividends are derived) were realized.

In the case where the actual dividend has been distributed to a company that is indirectly owned by a natural person/s tax resident of the Republic who have their tax residence (domicile) in the Republic and at the discretion of the Treasurer, the interposition of that company as a shareholder of the company that paid the dividend does not serve any commercial or economic purpose but has as its purpose the calculation of a reduced amount of extraordinary defense levy, the Commissioner has the power to consider that the dividend has been paid to the tax resident of the Republic who has his domicile in Republic which directly or indirectly controls the company that received the dividend, and to demand the extraordinary amount defense levy either by this person or by the company itself. Tax avoidance provisions apply.

3. From 1 January 2016, this subsection applies to dividends that are not deductible for the purposes of determining foreign tax from the company paying the dividend. Dividends Deductible for Foreigner Determination Purposes tax from the company paying the dividend are subject to corporation tax.

This exception does not apply if:

more than 50% of the foreign company’s activities yield direct or indirect income from investments and

the foreign tax is significantly lower than the tax burden in Cyprus. The tax authorities clarified through a circular that “significantly lower” means that the actual tax burden on distributed earnings is less than 6.25%.

If the exemption does not apply, the Cypriot company pays a 17% defense levy.

4. Such interest is subject to Income Tax.

5. Interest collected from Cypriot government development bonds and savings certificates from individuals, as well as and interest earned by a Provident Fund is taxed at 3%. If the total income of a natural person (including interest) does not exceed €12,000 in the tax year, the special contribution rate for defense is reduced to 3%.

In cases where the tenant is a Cypriot company, cooperative, the state or a local authority, the Emergency Defense Contribution on domestic rents is withheld at source and is payable at the end of the month following the month in which withheld. In all other cases the Emergency Defense Levy on such rents is payable by the landlord at the end of each semester, i.e. on June 30 and December 31 of each year.

Extraordinary Defense Contribution payable in domestic interest and dividends, to tax residents of Cyprus, is withheld in source and are payable at the end of the month following the month in which they were collected.

However, an Extraordinary Defense Levy on dividends, interest and foreign rent is payable at the end of each half-year, that is, on June 30 and December 31 of each year.

6. Rents are also subject to income tax. Foreign taxes paid can also be credited against the defense levy.

For more information please contact us or visit our website:

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Obligation for provisional tax payment

The following persons have an obligation to pay provisional tax, based on their expected annual taxable income for tax year 2023:

• Individuals with taxable income other than salaries, pensions, dividends and interest; and
• companies with taxable income.

Persons with no taxable income, do not have an obligation to pay provisional tax.

Payment of provisional tax

The provisional tax is calculated by applying the relevant tax rates (depending on whether the taxpayer is an individual or a company) on the expected taxable income for the year, after taking into account any overseas tax credits. It is payable in two equal instalments, as follows:

The timely payment of provisional tax can be made by firstly creating the provisional tax obligation through the Tax Portal of the Tax Department (TD) and then selecting one of the below payment methods from the icons appearing next to the Payment Reference Number (PRN):

Payments made after the effective deadline can only be made via online banking and will be subject to interest at the current rate of 2,25% per annum (calculated on a completed months basis) plus a 5% penalty on the tax due. An additional penalty of 5% may be imposed by the TD if the tax remains unpaid two months after the statutory deadline (i.e. for the 1^st instalment, the penalty will be imposed from 1 October onwards).

Any difference between the actual tax payable and the temporary tax paid for the year 2023 is payable by 1^st of August 2024.

10% additional tax in case of underestimation

In case the provisional taxable income declared is less than 75% of the final taxable income for the year, the taxpayer is required to pay an additional tax equal to 10% of the difference between the final tax due and the provisional tax paid.

Revised provisional tax calculation

Taxpayers can revise their provisional tax calculation (upwards/downwards) until 31 December 2023. In case of an upward revision, interest is payable on the difference between the revised amount payable and the amount initially declared and paid as 1^st instalment. It is noted that for downward revisions, Forms TD.5 (for individuals) and TD.6 (for companies) should be submitted.

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What profits are within the scope of the DDD provisions?

The DDD provisions apply to the profits of Cypriot tax resident companies that are ultimately attributable to shareholders which are Cypriot tax resident and Cypriot domiciled individuals.

These provisions do not apply to the proportion of profits that are ultimately attributable to shareholders which are non-Cypriot tax resident individuals or Cypriot tax resident individuals that are not Cypriot-domiciled (see further below though, on the obligation to withhold GHS contributions).

When do the DDD provisions apply?

The DDD provisions apply where a Cypriot tax resident company has not distributed at least 70% of its after tax profits (as adjusted for DDD purposes) within two years from the end of the tax year to which such profits relate.

In such a case, the undistributed part of such adjusted profits is subject to Special Defence Contribution (SDC) at 17%.

Therefore, companies with accounting profits for tax year 2020 that fall within the DDD provisions, would have to declare an appropriate amount of dividend, in order to meet the 70% threshold of distributed profits on or before 31 December 2022 and where applicable, pay the relevant SDC by the end of the following month that the dividend was declared.

Otherwise, on 31 December 2022, the relevant undistributed profits (up to the 70% threshold) would be considered as deemed distributed and the relevant SDC and GHS (where applicable) would need to be paid by 31 January 2023.

What about GHS contributions on actual or deemed dividend distributions?

The distribution of either an actual or a deemed dividend to shareholders which are Cypriot tax resident individuals (irrespective of their domicile status) is subject to contributions to the General Healthcare Scheme (GHS) at the rate of 2,65%. For more details on GHS contributions, please refer to the guidance issued by the Cyprus Tax Authorities.

GHS contributions on actual dividends would need to be paid by the end of the following month that the dividend was declared and on deemed dividends by 31 January 2023.

Dividends paid to shareholders which are either non-Cypriot tax residents or Cypriot tax resident companies (unless the 4-year rule applies) are exempt from SDC and from GHS contributions.

Payments of SDC and GHS

Prompt payments are made via JCC smart or online banking, while late payments can only be made via online banking.

The relevant tax codes per payment type are provided below:

What are the penalties for late payment of the SDC and GHS due?

Late payment of the SDC and GHS contributions due will be subject to interest at the current rate of 1,75% per annum and to a 5% penalty on the tax due. An additional penalty of 5% on the tax due may be imposed if the tax remains unpaid two months after the above due dates.

Tax declaration for actual dividend distribution

Form T.D.603 “Declaration of withheld Special Contribution for Defence (SDC) and General Healthcare Scheme (GHS) from Dividends” should be submitted by the end of the following month that the dividend was declared or by 31 January 2023 for deemed dividends, through TAXISnet. The form is due for submission only in case any SDC or GHS liability arises on the actual or deemed dividend payments. Late submission carries a fixed penalty of €100.

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Αll Cyprus incorporated companies and other legal entities must submit all information regarding their Beneficial Owner(s) through “ARIADNI”; RoC’s purpose-built online portal. 

The submission deadline has been set as the 12^th of March 2022. Failure to comply with the necessary information by the due date incurs a penalty of €200 per entity and each of its officers. Additional penalty of €100 will be applied for every further day for which the default continues, with a maximum of €20,000 for each default.

The responsibility for the true and accurate submission of BO information, rests with the Company or other entity and its officials.

Go to ARIADNI Portal >

About Beneficial Owners (BO)

Natural individuals or persons, who ultimately own or control a legal entity, through direct or indirect ownership of 25% plus one share or an ownership interest over 25% in the entity, that is held by a corporate entity, which is under the control of the natural person or persons or by multiple corporate entities.

Newly established Companies (meaning those registered on or after 16 March 2021), are obliged to submit the required information to the Registry of BOs, within thirty (30) days, from their registration date, the latest.

Any alterations to the BOs or the credentials of existing BOs must be filed to the Registry of BOs, within fourteen (14) days, following the specific change.

During the period extending, from 1^st until 31^st December of each calendar year, every Company or other legal entity, must electronically confirm to the Registrar of Companies, all standing information held, with respect to its BOs.”

What Do I Need to Do

• Collect information and documents related to your company’s Beneficial Owner(s)
• Register your company via the ARIADNI Government Portal
• Submit all information in due course

How We Can Help You

• Registration of Companies at the ARIADNI online portal
• Electronic submission of BO related documents and information
• Annual electronic confirmation of Beneficial Owner(s) for Cyprus entities

For any questions, clarifications or to get assistance for the documents submission please contact us via e-mail (info@pkl.com.cy) or by phone (+357-24-653555).

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