By Costas Christoforou, CEO of the CPM Group
It’s a well-known fact that at 12.5 percent, the level of corporate tax in Cyprus is competitive and attractive compared to other jurisdictions.
Indeed, many multinational companies have chosen our appealing island as their corporate headquarters due to the transparent and EU-compliant tax environment.
In addition, a new digital tax portal was released in July as the state moves towards a more efficient online system. Using a single log in, taxpayers and their agents can find all the information needed to report their taxes and make payments.
The Cyprus tax authorities have a reassuringly high standard of ethics expressed in their Code of Conduct which emphasises fairness, transparency, integrity, responsibility, objectivity, respect, confidentiality and avoidance of conflicts of interest.
Part of the administrative work at CPM is to support our clients to meet their tax reporting and payment deadlines. These can become more complex depending on the size and type of the company. It should be noted that there are a number of different state departments for tax and contribution payments, ranging from national health to social insurance and income tax.
In addition, some exceptions were made during the coronavirus pandemic, such as temporary suspension of VAT payments for affected businesses through November 2020. Plus, the deadline for income tax reports for 2018 were postponed until June 2020.
The main tax calendar followed by Cyprus-based companies consists of the below:
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Deadline type
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Due by
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Quarterly VAT report and payment
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10th of the month following the quarterly period
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Intrastat returns report (for traders)
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10th of the month following the previous monthly period
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Social insurance contributions for employees
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By the end of the month following the previous monthly period.
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Annual income tax report and payment for companies
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By the end of the first half of the following year.
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In conclusion, it is important to budget and plan for taxation as missed deadlines can mean interest and penalties. At CPM we specialise in administrative strategy to help our clients to navigate all aspects of business administration and reach their objectives in the most effective way while we handle the details.
The tax authorities regularly announce new initiatives and directives, if you have any questions our team is on hand to answer them