The Annual Tax Returns (IR1 & IR4)
Natural persons doing Business in Cyprus and all Legal Persons are required to be registered as Tax Payers at the Inland Revenue Department by completing and filing IR.162 or IR.163 forms respectively.
Additionally they are obliged by Income Tax Law to prepare and submit their Tax Return for each calendar year, by the end of the following calendar year (31 December). The form IR1 should be submitted by natural persons and the form IR4 should be submitted by legal persons (eg. companies).
Currently the Business Tax Returns can be submitted only through TAXISNET platform via Tax Consultants or Registered Auditors. This allows an extension of 3 months (31 March) to the deadline.
The penalty for late submissions is €100 per Tax Return, unless the business was dormant during that period. In such case the business can file an objection to Inland Revenue Department and the penalty will be revoked.
In cases where a business does not meet the deadline, a reminder letter might be sent by the Inland Revenue Department, which will imply an additional penalty of €200 if the company is unable to submit its Tax Return within the timeframe specified in the letter.
For more information visit Business Taxation Section.