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Fairfax Cyprus Tax Diary September 2014

Payment of immovable property tax for 2014

Submission of 2013 personal income tax return of individuals not required to prepare audited financial statements. Their income should derive from a trade/business, income from rents, dividends, interest, income from royalties or income relating to trading goodwill and payment of tax via a self- assessment method.

31 December

Payment of provisional tax-second and last instalment for 2014
Payment of special contribution for defence for the last six months of 2014 on rents and on dividends or interest from sources outside Cyprus.

General

Interest and Penalties
Income tax

The official interest rate, as set by the Finance Minister is 4.75% per annum for all amount due after 1 January  2013. For previous years the following rates apply:

5% for years 2011 and 2012
5.35% for the year 2010
8% for the years 2007-2009 and
9% up to 31 December 2006.

In addition to the interest charge, penalties are also charged depending on the circumstances

Social Insurance

Late payment of Social Insurance results in the imposition of a penalty of 3% for each month of delay. The maximum penalty that can be impose is 27% of the amount due.

PAYE and Defence tax

Failure to pay PAYE and Defence tax by the due date:

Interest will be added at the rate of 4.75% per annum from the due date and an additional penalty of 1% per month ( based on complete months)

Total amount of the additional penalty cannot exceed 11% of the tax due ( interest is calculated on complete months)

For the outsourcing of your accounting and payroll needs please contact Nicoletta Demetriou, Director Accounts & Payroll on +357 25558025 or email: nicoletta@fairfaxyeaman.com

By 30^th of June 2014 :

As from 2011 an annual levy of €350 is introduced for all companies incorporated in Cyprus payable to the Registrar of Companies. New incorporated companies between the period 01/07/2013-30/06/2014 needs to pay the 2014 annual levy also. The levy for 2014 is payable on or before 30th of June 2014.

Penalty
In case of up to a 2-month delay – 10% penalty.
In case of a delay between 2 and 5 months – a 40% penalty.

Non-payment of the levy may result in a de-registration (strike-off) of a company by the Cyprus Registrar of Companies. If a company is re-instated within a 2-year period from its strike-off a fixed penalty of €500 (in addition to the outstanding amount of the levy) is imposed. The fixed fee will be increased up to €750 where a company is re-instated after the 2-year period.

Submission of 2013 income tax return for trading individuals who do not prepare audit financial statements and their income exceeds €19,500. Payment of tax balance for 2013 through self-assessment by individuals who do not prepare audit financial statements.

By 31^st of July 2014 :

Electronic submission by employers for the year 2013( Employer’s emoluments return, Form IR7). Submission  of the 2014 provisional  tax return and payment of the first instalment.

By 1^st of August 2014:

Payment  of 2013 final corporation tax under  the self-assessment method. Payment  of 2013 personal income tax under  the self-assessment method by individuals preparing audited financial statements.

Further information contact us on +357 25558025

According to Law 170(I) of 2012 (No.4) amending the Social Insurance Law of 2010, the following provisions will be enforced:

As from January 1st 2014:

Social Insurance

The rate for the calculation of the Social Insurance contribution for the employee and the employer is increased to 7,8% from 6,8% on the insurable amount.

*The maximum amount that applies for 2014 is €54.396 (weekly €1.046/ monthly €4.533)

Special Contribution

The following Special Contributions are payable according to monthly income of a salaried employee:

For any further information you need in connection with the above please refer to Nicoletta Demetriou at our Limassol office.

Fairfax Services brochure can be downloaded here. Fairfax  – Cyprus Brochure (1).pdf

Fairfax  specializes in the outsourcing of bookkeeping, accounting, payroll and immigration services and offers a cost-effective strategy that saves companies time, staff and infrastructure costs. A GRS Group company, our services also include company formation and management through our trusted and recommended partners.

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Learn more about the process of obtaining a Cyprus work permit through GRS’ group company, Fairfax.

Cyprus is a highly popular location for emigration. Thousands of people a year relocate to the island with the intention of living and working here. With low tax rates, a cosmopolitan lifestyle and year-round sunshine, there are plenty of reasons to consider relocating to Cyprus.

Though the 2013 financial crisis had a negative impact on the country’s economy, there are still plenty of jobs in Cyprus. Recruitment in Cyprus remains high and there is a strong need for skilled individuals, particularly professional services individuals with experience in accounting, auditing, bookkeeping, law and administration. Furthermore, Cyprus’ forex industry is booming with a year on year increase in available job vacancies. In 2014, 27% of job vacancies at GRS were filled in forex while 25% were filled in the professional service sector.

Obtaining a Work Permit in Cyprus with Fairfax 

If you are an EU citizen then there is no need to obtain a visa to work in Cyprus, however you do need to arrange an immigration appointment in order to obtain a Certificate of Registration of Union Citizen and EU Citizen (also known as a Yellow slip). This will enable you to register in the Civil Registry and Migration Department.

If you are a non-EU citizen then you will need to obtain a work permit and visa to prove eligibility to live and work here.

The process of obtaining a Cyprus work permit can be relatively tricky, but by attaining the assistance of a specialist company, such as GRS’ Group Company, Fairfax, the entire procedure will be far quicker, easier and more straightforward.

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With Fairfax all needed documentation will be collated and completed, including the relevant application forms. Other accompanied documentation required, including a clean criminal record certificate, a medical certificate, a bank letter of guarantee, a passport copy and a signed contract of employment can be collected with the assistance of Fairfax.