Tax Updates in Cyprus

Taxpayers’ Obligation for Personal Income Tax Returns

The Amending Law to the Assessment and Collection of Taxes Law (L.126(I)/2020) has introduced an obligation on all taxpayers to submit a personal income tax return, irrespective of their income. In addition, the Amending Law affords the Council of Ministers with the power to issue a Decree stating the criteria on which individuals with a gross income below €19,500 may be exempted from the obligation to submit a personal income tax return (see below).


Submission Exemption from Personal Income Tax Return for 2020

The Council of Ministers has issued a Decree (RAA 288/2021) according to which individuals who, during the year of 2020, have a gross income that does not exceed €19,500 are exempted from the obligation to submit a personal income tax return for 2020.


Deadlines Extended due to Covid-19 Pandemic

The Assessment and Collection of Taxes Law of 1978 (L.4/1978), as applicable today, has recently been amended to extend the following tax return deadlines to 30 September 2021:

  • Electronic submission of individuals’ personal income tax return (TD1A) for 2020 and payment of final tax due as per the relevant income tax return;
  • Electronic submission of employers’ tax return (TD7) for 2020; and
  • Payment of provisional tax for 2020 (2nd instalment).

These extensions have been granted to account for the prolonged duration of the Coronavirus disease (COVID-19) pandemic and associated adverse financial consequences.


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