Contributed by:

Nicos Constantas

Contributed by:

Nicos Constantas

On the 31st of July 2020 the House of Representatives voted amongst others the following amendments on Assessment and Collection of Taxes Law (the “Law”). The amendments were enacted into law on the 20th of August 2020.

  1. Obligatory submission of personal income tax returns from 2020 and onwards

As from tax year 2020 onwards, all individuals, except those who meet the criteria that will be set by the Council of Ministers, with gross income which falls   under   the provisions of Article 5 of the Income Tax Law are obliged to submit a personal income tax return.

Gross income described under Article 5, includes among others, dividends, interest and profits from share dealings which may be not taxable under any tax or not taxable under income tax. 

  1. Submission of revised income tax returns

Pursuant to Article 5B of the amendment Law, the taxpayers may submit a revised tax return for tax years 2020 and onwards, within 3 years from the submission deadline of the relevant tax return and only if the revision arises:

  • as a result of claiming a relief, deduction or tax credit; or
  • as a result of correcting an error; or
  • for the purposes of being consistent with the provisions of the tax laws.

Despite the above stated, a revised tax return cannot be submitted during a tax examination or a tax audit of the relevant tax return.

A taxpayer must settle any tax liabilities arising from the revision, within 30 days from the submission of the revised tax return.

  1. Employer’s return

The deadline for the electronic submission of the Employer’s return (TD7) is amended from the 31st of July to the 31st of May of the year following the tax year. 

There is also a new provision that clarifies that emoluments include the deemed   benefit from loans provided by a company to the directors/shareholders and their related individuals and should be included in the Employer’s return (TD7).       

  1. Accepting payments through credit cards

Article 30A of the amended Law provided that persons which exercise any economic activity will be obliged to accept credit card payments. The persons falling under this provision will be set by a Decree of the Council of Ministers.

In order to meet this requirement, they would need to have the appropriate equipment, made available from licensed credit card payment providers.

As from 21 February 2021, in case of non-compliance, an administrative fine of up to €2.000 will be imposed. No refund in case of non-compliance with VAT obligations id provided.

  1. Tax refunds

The refund of any tax will be suspended in cases where the taxpayer has not submitted any VAT return due by the end of the tax year in which the examination for the refund began, until the taxpayer complies with this obligation.