Registering for income tax and value added tax (VAT)

Who should register?

You must register for income tax if you are:

A physical person whose gross annual income exceeds €19,500.
A legal entity (e.g. a company) registered in the Republic of Cyprus.

You must register for value added tax (VAT) if you are:

A physical or legal person registered in the Republic of Cyprus and the taxable transactions value of your goods and services carried out over the 12 preceding months – or which will be carried out within the next 30 days – exceeds or will exceed €15,600.
A physical or legal person making acquisitions in the Republic of Cyprus from other EU member states and:

- at the end of any one month, over the preceding period of a year, starting from the 1st of January, when the total value of acquisitions, exceeds the threshold of €10,251.61.
- whenever there are reasonable grounds to believe that the value of acquisitions over the next 30 days will exceed the threshold of €10,251.61.

How to register

The submission of a request for registration in the Tax Register is carried out ONLY online through the Taxpayer Portal TAX FOR ALL (TFA).

A prerequisite for submitting a registration request through TFA is, firstly, to create an Account: “Register for an Account“.

More information can be found in the guides below:

• Account Creation Guide

• Electronic (online) Registration Guide

V.A.T. Registration

A prerequisite for registration in the VAT Register is the previous registration in the Tax Register (as mentioned above). Therefore, before the T.D. 1101 form (additional application for VAT registration) is submitted the applicant must first obtain a Tax Identification Number (T.I.N.). In cases where the electronic request for registration in the Tax Register has been submitted, but the T.I.N. has not yet been issued, the T.D. 1101 form should be submitted by writing on it, the Reference Number REGXXX of the electronic registration case.

For registration in the VAT Register, the T.D. 1101 form must be duly submitted (filled in and signed) and accompanied by the following supporting documents:

a copy of an official receipt/document, proving that the entity carries out taxable activities/transactions in the Republic of Cyprus (e.g. copy of a contract, copy of an invoice related to their activities/transactions).

The form can be submitted by hand at the closest District Tax Department Office (your local District Office), or by hand or post at the PSC Cyprus.

Your tax obligations

Delays in the submission of declarations and/or the payment of taxes are liable to accrue interest, fines and other charges, so have a careful read of your obligations.

Note: All tax payments due can be settled online through JCC Smart.

Legal entities (companies) must:

- issue invoices and receipts and keep accounts and records;
- prepare audited financial statements through an approved auditor;
- submit a declaration via TAXISnet by filling in Form T.D.4 (Company Income Tax Returns) 15 months after the end of the tax year (e.g. the income tax return for 2016 should be submitted by the 31^st March 2018), or by the date set by the Commissioner;
- submit a Temporary Tax Assessment in which the expected taxable profit of the company in the current tax year is estimated. The resulting tax (on the estimated profit) must be paid in two equal instalments on 31^st July and the 31^st December of the current tax year;
- submit a self-assessment by filling in Form I.R.158A (Self-assessment of companies and other bodies) and pay the resulting tax by 1^st August of the year following the tax year assessed.

Self-employed individuals whose annual turnover does NOT EXCEED €70,000 must:

- issue invoices and receipts and keep accounts and records;

- submit a declaration via TAXISnet by filling in Form T.D.1 (Declaration of income self-employed) by the 30^th September of the following year or the date set by the Commissioner;

- submit a Temporary Tax Assessment in which the expected taxable profit of the individual in the current tax year is estimated. The resulting tax (on the estimated profit) must be paid in two equal instalments by 31^st July and the 31^st December of the current tax year;

- submit a self-assessment by filling in Form I.R. 158A SE (Self-assessment for individuals) and pay the resulting tax by the 30^th June of the year following the tax year assessed or up to the date set by the Commissioner.

Self-employed individuals whose annual turnover exceeds €70,000 must:

- issue invoices and receipts and keep accounts and records;
- prepare audited financial statements through an approved auditor;
- submit a declaration via TAXISnet by filling in Form T.D.1 (Declaration of income – self-employed) 15 months after the end of the tax year (e.g. the income tax return for 2016 should be submitted by the 31^st March 2018), or by the date set by the Commissioner;
- submit a Temporary Tax Assessment in which the expected taxable profit of the company in the current tax year is estimated. The resulting tax (on the estimated profit) must be paid in two equal instalments on 31^st July and the 31^st December of the current tax year;
- submit a self-assessment by filling in Form I.R. 158A SE (Self-assessment for individuals) and pay the resulting tax by the 1^st August of the year following the tax year assessed.

Employees must:

- submit a declaration via TAXISnet by filling in Form TD 1Α (Declaration of income – employee) by 31^st July of the following year or the date set by the Commissioner;
- complete the “Tax computation for individuals” section on the declaration of income in order to calculate individual tax, which must be paid by the 30^th June of the year following the tax year assessed or by the date set by the Commissioner.

Employers must:

- submit a declaration via TAXISnet by filling in Form IR7 (Employer’s Declaration) by the 30th of April of the following tax year or the date set by the Commissioner;
- submit a “Monthly status of employer deductions” for the income tax and contributions withheld from employees and pay the tax withheld by the end of the month which follows the month for which the retention was made.

Entities registered for VAT purposes must:
- submit a VAT declaration via TAXISnet by filling in Form T.D. 1004 and pay the tax due by the 10th day of the second month following the end date of their tax declaration.