PMA & Co. / Audit, Tax & Consulting Firm

29/06/2023

Deadline for Payment of Temporary Tax (Provisional Tax)

In accordance with Article 24 of the Assessment and Collection of Taxes Law, all companies must notify the Commissioner of Taxation of their estimated taxable income for the year by 31 July 2023, and consequently pay the estimated tax in two equal instalments as follows:

1st Instalment - 31 July 2023
2nd Instalment - 31 December 2023

You should note that:

• The payment of the 1st instalment can be made by 31 August 2023, without any interest and penalties.

• Non-payment of the 1st instalment on the due date attracts interest at the rate of 2.25% per annum, calculated on a monthly basis.

• If the estimated income declared in 2023 is less than 75% of the final taxable income, as determined by the Income Tax return submitted for the year 2023 and/or as per the taxable income as assessed by the Commissioner of Taxation, then any balance of tax is subject to an additional 10% charge.

• Revision of the original temporary tax declaration is possible until 31 December 2023, with any revised tax amounts being equally apportioned over the two instalments, thus attracting the interest of 2.25% per annum on the part which relates to the 1st instalment.

• Under the Income Tax law, all Cyprus tax resident companies are taxed at the rate of 12.5% on their taxable income.

• The balance of tax payable for the tax year 2023 is payable by 1 August 2024.

• Overpaid tax is refunded (under conditions) together with interest at the applicable official interest rate set by the Minister of Finance, as of 1 January 2024.

📧 [email protected]
➡️ https://pma.cy/

📞 (+357) 25 358 300
🗺️ 115B Spyrou Araouzou Street, 3036 Limassol, Cyprus

In accordance with Article 24 of the Assessment and Collection of Taxes Law, all companies must notify the Commissioner of Taxation of their estimated taxable income for the year by 31 July 2023, and consequently pay the estimated tax in two equal instalments as follows.

29/06/2023

5% VAT on primary residence

We would like to inform you that on 16 June 2023, an amendment to the Cyprus VAT Law was published in the Cyprus Government Gazette concerning the new legislative framework for 5% Value Added Tax (VAT) rate on the acquisition and/or construction of a primary residence in Cyprus.

The new law provides that 5% VAT applies for:

The first 130 sq.m. for a value up to €350.000

Subject to the total value not exceeding €475.000 and total size not exceeding 190 sq.m.

The acquisition and/or construction of a new residence which exceeds the 190 sq.m. and/or €475.000 maximums will be subject to 19% VAT for the whole value.

The new legislative framework does not apply for buildings for which a planning permission has been obtained or an application for planning permission has been submitted until 31st of October 2023, and the relevant application for the 5% VAT rate has been submitted within 3 years from the date of the new law (i.e. by 15/06/2026)

Any residences meeting the transitional provisions will be eligible to apply for the 5% VAT reduced rate under the regime applicable up to 15/06/2023 (i.e. 5% for the first 200 sq.m. with no value or size maximums).

📧 [email protected]
➡️ https://pma.cy/

📞 (+357) 25 358 300
🗺️ 115B Spyrou Araouzou Street, 3036 Limassol, Cyprus

We would like to inform you that on 16 June 2023, an amendment to the Cyprus VAT Law was published in the Cyprus Government Gazette concerning the new legislative framework for 5% Value Added Tax (VAT) rate on the acquisition and/or construction of a primary residence in Cyprus.

29/06/2023

The Tax Department has recently announced an extension of the deadline for the submission of Tax Returns for Individuals for the 2022 fiscal year. The new deadline is now set to be on October 2nd, 2023. This provides taxpayers with additional time to ensure that their tax returns are accurate and complete, giving them more peace of mind when submitting their documents.

We strongly encourage taxpayers to use this extended deadline to their advantage, taking the time to carefully review and submit accurate information.

Specifically, a Decree (No.183/2023) was issued on 9 June 2023 in the Government Gazette which extends the deadline for the 2022 personal income tax return (Form T.D.1) as well as for the payment of the final tax due for employees, pensioners and self-employed persons (Form T.D.1 self-employed) with a turnover below €70.000 who do not have the obligation to submit audited accounts.

It is reminded that obligation to submit the 2022 Income Tax Return have Employees, Pensioners and Self-Employed, whose gross total income for the year 2022 is greater than €19.500.

📧 [email protected]
➡️ https://pma.cy/

📞 (+357) 25 358 300
🗺️ 115B Spyrou Araouzou Street, 3036 Limassol, Cyprus

We would like to inform you that the Tax Department announced the extension of the deadline for the submission of the Tax Return for Individuals for the year 2022 until the 2nd of October 2023.

14/04/2023

All of us at PMA & Co., wish you and your families a Happy Easter and happy holidays! 🐰🥚

02/03/2023

PMA & Co. is a boutique tax, audit and consulting firm that combines deep industry knowledge and expertise with innovation.

Whatever your issue, industry, or stage of development, we promise to bring expertise, agility, knowledge and solutions that are tailored-made to your needs.

📧 [email protected]
➡️ https://pma.cy/

📞 (+357) 25 358 300
🗺️ 115B Spyrou Araouzou Street, 3036 Limassol, Cyprus