Filenews 7 April 2022 - by Eleftheria Paizanos
In April, the tax returns of employees and self-employed persons will be posted this year. As "F" is informed, at the end of this week the Tax Department will post the returns for natural persons for the tax year 2021 in its electronic system and then taxpayers will be able to submit them electronically until July 31st. This year it became possible to start earlier the submission of tax returns, after the coordinated efforts and the good planning that proceeded with the officials of the Department of Taxation. In this way, the relevant department conveys the right signals to taxpayers, which is hoped to help strengthen tax compliance. It is recalled that for the previous tax years the submission of tax returns began in July and was completed around the end of November, while sometimes a few-day extension was granted.
Speaking to "F" on behalf of the Tax Department, Sotiris Markides said that the timely start of filing tax returns will increase taxpayers' compliance, and no extensions will need to be given. He also said the effort made by the Department serves taxpayers, adding that "we want there to be an increase in tax compliance and service to citizens." At the same time, he assured that the process will be the same as in the 2020 tax year, stressing that taxpayers, due to the experience they have gained over the last five years with the electronic filing of tax returns, are not expected to face any difficulties. As last year, the fields of the tax return will be pre-filled, with the exception of the fields of tax and earnings of the employee or self-employed person.
Along with the submission of the tax return, taxpayers can also pay the tax due that will result from the self-taxation. And in the upcoming return for the tax year 2021 there will be an interconnection of the TAXISnet system with necessary data of the Social Insurance services and the introduction of fields related to the ghs implementation. The submission of tax returns will be done through the Taxisnet system, while the payment of taxes is made through the JCCSmart website.
It is worth noting that this year may be the last time we will submit the tax returns to Taxisnet, as next year the new electronic system of the Department of Taxation will be implemented, through which the tax returns will be submitted. That is, an effort will be made to make the submission of income returns for the 2022 tax year through the new system. It is recalled that, following a decree of the Department, those who had annual gross incomes up to €19,500 are excluded from the submission of tax returns, despite the legislation that provides for the mandatory submission of tax returns by all taxpayers, regardless of income.**
May statements for companies
Meanwhile, in early May, the relevant department plans to start filing the 2022 tax returns for legal entities, which they will have at their disposal by March 2023 to comply. According to Mr. Markides, for the first time companies will have so much time at their disposal to file their tax returns. He also indicated that in this way the problems that had been identified in previous years will be eliminated.
** Once you have been resident in Cyprus for 17+ years, there is the defence levy to pay regardless of your annual gross income and so returns need to be submitted. Taxisnet info
