Filenews 17 July 2023
The start of submission of the 2022 Person's Income Declaration through the TaxisNet system (address https://taxisnet.mof.gov.cy), was announced on Saturday by the Tax Department of the Ministry of Finance, while stating that the last date for the timely submission of the 2022 Person's Income Return and payment of the tax due is October 2, 2023.
In an announcement, the Department states that "based on a decree of the Council of Ministers (KDP 373/2022). Employees, pensioners and self-employed persons whose gross total income for the year 2022 exceeds the amount of €19,500 are obliged to submit an individual's income declaration for the year 2022". If you have been resident in Cyprus for 17+ years, even if your income is less than €19,500, you must submit a return for the defence levy.
A prerequisite for the submission of the Declaration is the electronic registration in the TaxisNet system – direct taxation, he adds.
The Tax Department states that useful information material has been posted on the website of the www.mof.gov.cy/tax for completing and submitting the return, under the icon "TAXISnet – income statement of an individual 2022".
Employees, pensioners and self-employed persons whose gross total income for the year 2022 is greater than €19,500 have the obligation to submit a person's income declaration.
The useful information mentioned by the Tax Department on its website is: as far as tax residence is concerned, it varies accordingly, whether or not you are a resident of the Republic.
You are a resident of the Republic of Cyprus if: You have remained in the Republic within 2022 for one or more periods, which in total exceed 183 days or on the basis of the Protocol on the privileges and immunities of the EU or, you have remained in the Republic for, in the Republic, you have not been resident in another country for more than 183 days, you were not a tax resident in another country and had your own business or you were employed or held office in the Republic that did not terminate on 31/12/2022.
If one of the above conditions applies then you are a tax resident of the Republic and you must declare your income both from sources inside and outside the Republic. You are not a resident of the Republic of Cyprus if:
None of the above conditions apply and you should only declare your income from sources within the Republic and choose your country of tax residence.
For rents, declare the rental income earned or accrued during the tax year in the Republic, and/or outside the Republic.
You should state the registration number of the rented premises as stated on the title deed.
In the clarifications, it is noted that the cost of acquiring the rented property corresponding to your share must be stated, in any way it was acquired, e.g. by construction, purchase, donation, inheritance, etc., in order to calculate the amount of the capital deduction you may claim.
It is also not mandatory to fill in with the VAT number / ID number. tenant when the tenant is an individual.
In case you are the owner, even if no title has been issued yet, or you have transferred the property within the year, then capital discounts are granted accordingly or not.
Declare dividend income in the Republic and/or outside the Republic, provided that you are a tax resident of the Republic. Dividend income is not subject to income tax. However, it is subject to NRAs and GHS.
For the redemption of the life insurance policy, it is completed only in the case of redemption of a life insurance policy, before the expiration of 6 years from the date of commencement of the policy.
Specifically: If you redeem your insurance policy within 3 years of its commencement, then 30% of the total premium deduction granted to you will be taken into account as additional income in the tax calculation.
If you redeem your insurance policy between the 4th and 6th year from its inception, then 20% of the total premium deduction granted to you will be taken into account as additional income in the tax calculation.
