The Tax Department announced on March 20 2018 that companies and self-employed individuals that are required to submit annual accounts will be given an additional three months to file their tax returns for the year ended December 31 2016. They are normally required to file their tax return no later than 15 months after the end of the tax year concerned, in this case by March 31 2018, but this deadline has now been extended to June 30 2018.
In February 2018 the department issued a circular clarifying the requirement to produce audited financial statements to support tax returns. Article 30(1)(b) of the Assessment and Collection of Taxes Law 1978 requires any resident whose income comprises business profits, dividends, interest or discounts, rents, royalties or any amount or consideration for goodwill to:
- maintain accounting books and records; and
- produce audited financial statements. Individuals whose annual turnover does not exceed €70,000 are exempt from this requirement.
'Annual turnover' for determining eligibility for the exemption includes not only the revenue of the business, but also dividends and the other categories of income set out above. Companies' tax returns must always be supported by audited financial statements.
For further information on this topic please contact Constantinos Christofi at Elias Neocleous & Co LLC by telephone (+357 25 110 110) or email (firstname.lastname@example.org). The Elias Neocleous & Co LLC website can be accessed at www.neo.law.
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