Natural persons are liable to register with the Inland Revenue Department and obtain a Tax Identification Number for individuals, provided that their annual earnings exceed 19500 euros, whereas all companies established in the Republic of Cyprus are liable to register with the Inland Revenue Department and obtain a Tax Identification Number for non individuals.
Individuals resident in the Republic of Cyprus for tax purposes, that is, individuals residing in the Republic of Cyprus for a period or more which in aggregate exceed 183 days in the same tax year, are liable to tax in respect of worldwide income. Likewise, companies resident in Republic of Cyprus for tax purposes, that is, companies whose management and control are exercised in the Republic of Cyprus, are liable to tax in respect of worldwide income.
Individuals and companies not resident in the Republic of Cyprus for tax purposes are liable to tax only in respect of Cyprus source income but they may wish to be taxed as if they were so resident, provided that they have a permanent establishment in the Republic of Cyprus.
Registration Procedure
The IRD 163 form for the registration of new taxpayers or amendment of taxpayer’s data (individuals) or the IRD 162 form for the registration of new taxpayers or amendment of taxpayer’s data (non individuals) should can be submitted to the District Income Tax Offices. The contact details are provided in related documents.
The application should be accompanied by the following documents:
Copy of identity card or passport or alien registration certificate or evidence of T.I.C. of foreign tax authority (in case of self-employed person);
Copy of certificate of incorporation, copy of certificate of registered office address, copy of certificate of directors and secretary, copy of certificate of shareholders and copy of memorandum & articles of association or certificate of tax identification code of member state of establishment (in case of a company);
Copy of Certificate of Partners, Copy of Place of Business Address, Copy of Certificate of Partnership Registration, copy of partnership agreement (in case of partnership).
The Tax Identification Number is given within one or two days.
Obligations and Supervision
Self-employed taxpayers, whose annual turnover does not exceed €70000, are obliged to submit Income Tax Returns of Self-Employed persons (IR1) and pay the relevant tax amount by the 30th of June following the end of the taxable year.
Legal persons or self-employed whose annual turnover exceeds €70000 are obliged to issue invoices and receipts, keep books and records, prepare audited accounts by certified auditors and submit Company Income Tax Declaration (IR4) or Income Tax Returns of Self-Employed persons (IR1) respectively along with audited accounts by the 31st of December following the end of the taxable year. Moreover, legal persons are obliged to pay the relevant tax along with the Form IR 158.
Employers are obliged to submit Employers Declaration Form (IR7) by the 30th of April following the end of the taxable year and Monthly Employers Statement (IR61) of Tax withheld for employees. Likewise, employees are obliged to submit Income Tax Returns by the 30th of April following the end of the taxable year.
Notably, Income Tax Returns can be submitted electronically through the TAXISNET Service.
The Income Tax Commissioner is authorised, by the Income Tax legislation, to request from any person evidence or solemn statement as per the income earned, that may be deemed necessary.