ADVISORY - CYPRUS INCOME & DEFENCE CONTRIBUTION TAXES

With thanks to John Clifton and KVHA for the following information:

Advisory - Cyprus Income & Defence Contribution Taxes

It is understood that the Citizen’s Advice Office has a Specialist on hand to help with any problems. Please be aware that the deadline is the 31st October. Cyprus Income & Defence Contribution Taxes Introduction Prior to 2018 the system for paying these taxes was straightforward and other than the option to download the forms for the payment of the half yearly Defence Contributions rather than receiving them from the Tax Department, it was not essential but obviously advantageous to be computer literate. That has now all changed and Cyprus has opted for exclusively online submission for payment of these taxes and there have been the usual teething problems. Taxes and means of payment Annual Income Tax Return Although an exception has been made this year and the latest date of submission for the 2017 Annual Tax Return has been extended to 31stOctober 2018 it is expected that for subsequent years the usual final date of 30thApril will apply.   The old form TD 1 Declaration of Income has now been superseded by the online form Income Tax Return Employee 2017 which is accessed via  http://taxisnet.mof.cy Log in using your Taxisnet User Access Codes and navigate as follows, Initial User Page Return Management Submit/view Returns Tax Returns – View Submit Select Submit which reveals link to Returns for 2007 to 2017 In cases where the only income being declared relates to pensions completion is fairly straight forward but see Note 1 below regarding error messages. Payment of Income Tax The old form TD 5 2017 Computation of Temporary Tax by Individuals has now been superseded by online forms (0200) 2018 Temporary Income Tax for 1st and 2nd Instalments. As in the past, the final date of submission of the form is 31stJuly and the 1st Instalment is also due on that date.   The 2nd Instalment is due by 31st December.   Previously the option of paying both instalments by 31st July was available and perhaps still is but the heading of the online form has now changed to 2nd Instalment.   This is an issue requiring further clarification. The Form (0200) 2018 Temporary Income Tax is accessed via https://www.jccsmart.com  Login to your JCC account in the usual manner and navigate as follows, Select English Select Tax Department. Select Self Assessments – click to view category. Select Temporary Assessment (Self Assessment) 0200 Next menu. Income Tax (Individuals and legal persons) 0200 – 2nd Instalment. Select.  Click here to pay the invoice. Defence Contributions Levied on income from Savings Accounts, Dividends and Rental income.  Tax paid in two tranches.   By 30th June for income received during period 1st January – 30th June and by 31st December for income received during the period 1st July – 31st December. The old Form TD 0601 Payment of Defence Contribution Withheld and Self Assessment of Income Subject to Tax has been superseded by 3 individual online forms which are accessed via https://jccsmart.com. These are, Interest.- (0612AB) From sources Outside the Republic of Cyprus. See Note 1 below. Dividends. - (0613AB) From Sources Outside the Republic of Cyprus. See Note1 below Rental Income. - (0604) Defence on Rents (Self Assessment by the owner).  See Note1 below Login to your JCC account in the usual manner and navigate as follows, Select English Select Tax Department Select Self Assessments Click to view category Click options      Interest   Dividends Rents Click to pay each invoice Notes 1. The error messages generated particularly concerning the Defence Contribution forms will vary dependent upon individual circumstances and where solutions remain elusive we recommend referral to the Paphos Tax Department.  Room 022 on the ground floor, (turn left immediately before the Reception Counter), is equipped with work stations where staff will assist in overcoming submission problems. 2. A pamphlet entitled ‘Guidelines for the submission of the Income Tax Return – Employee for the tax year 2017’ is available online but obviously suffers from the same limitations as the form.The pamphlet is accessed via the Tax Department website. Scroll to box   Taxisnet. Income Tax Return 2017. Select Box and ‘Employees Income Tax Return 2017 (Manual Guide, Electronic Guide) is revealed. 3. Useful contacts at the Paphos Tax Department.   General Enquires.   Room G124.   Ms. Elsa Papanicholou.    Room G033. Ms. Despo Antoniou. Online return problems.   Room  022.  Mr. Nicholas Aristodemou. 4. In cases where people feel unable or do not wish to file their own returns online, it is strongly recommended that they exercise great care when employing an accountant.  We are aware of a case where the fee charged was out of all proportion to the work undertaken.  Caveat Emptor!