2018 Income Tax Return (Form T.D.4) for Companies – Courtesy of EY

The Cypriot Tax Department has published the 2018 income tax return for companies.

The only difference between the 2018 and 2017 income tax return template is an addition made in Part 3 – “Computation of Taxable Income” whereby in case the tax payer is involved in intra-group financing arrangements (i.e. relating to loans financed out of debt) is requested to confirm whether a Transfer Pricing Study (“TP Study”) has been prepared to support the taxpayer’s position or whether the taxpayer has followed the safe harbour rules as mentioned in the Interpretative Tax circular 3 (No: 05.13.001) issued by the Cypriot Tax Department on the 30th of June 2017.

It is noted that the 2018 income tax return needs to be electronically submitted via the TAXISNET portal. Based on the current provisions of the legislation the 2018 income tax return is due for filing by 31 March 2020 and failure to submit the return by the due date will attract a flat penalty of Euro 100. It is further noted that if the tax return for a specific tax year is requested in writing by the Tax Department and this is not submitted within the requested period, a penalty of Euro 200 is imposed for every notice issued.

Upon conviction for failure to submit an Income Tax return for companies, a person shall be liable to a fine not exceeding Euro 17 per day for as long as the failure continues, or to imprisonment for a term not exceeding 12 months or both.