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ICPAC offers clarification on tax administration

Cyprus
5 Sep 2013

The Association of Certified Accountants in Cyprus (ICPAC) has released a Q&A document in order to provide technical support and assistance to its members in relation to the administrative provisions on taxation. Taxand Cyprus highlights the key topics covered by the document. 

The ICPAC have provided clarification on various subjects including, but not limited to, the following:

  • All companies, which in their first year of operations, prepare financial statements for a period exceeding 1 calendar year must prepare an income tax return for each year separately
  • Companies which were deregistered from the Registrar of Companies do not have to submit income tax returns once they are deregistered, however they must inform the Inland Revenue Department (IRD)
  • Companies which have no employees do not have to submit the Employer's Tax Return (IR7) provided the IRD has been informed, by submitting the relevant forms
  • Any tax withheld from abroad, should be taken into consideration when applying the 10% additional tax due to low provisional tax estimation. From 2013 onwards, companies must submit a temporary tax assessment if they have taxable income even if there is no resulting tax liability after the deduction of foreign tax to be withheld
  • To provide refundable tax offset with tax payable, the IRD should issue assessments showing the refunded tax

Your Taxand contact for further queries is:
Zoe Kokoni
T. +357 22 699 222
E. zoe.kokoni@eurofast.eu

Taxand's Take

The clarifications provided by the ICPAC are intended to guide individual professionals as well as corporations when taking the necessary actions in order to remain compliant and to avoid any possible fines.

Taxand's Take Author

Zoe Kokoni
Cyprus