On 23rd February 2024, the Cyprus Official Gazette published a noteworthy Decree, signaling a meaningful change in taxation. The Decree revolves around the extension of the filing deadline for Corporate Income Tax returns (TD4) for a specific category of taxpayers. Those engaging in related party transactions and obligated to submit a Summary Information Table (SIT) are the focal point of this regulatory adjustment.
Extension of Filing Deadline
The main point of the Decree is the extension of the electronic submission deadline for TD4 for the fiscal year 2022. For taxpayers with related party transactions and a corresponding obligation to file the Summary Information Table (SIT), the new deadline is set at 30th November 2024. This extension provides these entities with additional time to compile and submit their financial information, aiming to facilitate a smoother and more accurate tax filing process. Familiarize yourself with previous related articles here.
Penalties for Non-Compliance
While the extension offers relief, the Decree does not neglect the importance of timely compliance.
To ensure adherence to the new deadline, the regulatory framework introduces a penalty for non-compliance.
Taxpayers failing to submit the TD4 along with the required Summary Information Table (SIT) by the extended deadline will face a penalty of €500.
Unchanged Deadline for Specific Taxpayers
It's crucial to note that the extended deadline applies specifically to taxpayers with related party transactions and an obligation to submit the TD4 with the Summary Information Table (SIT). For other taxpayers not falling within this category, the original deadline for submission remains unchanged. These taxpayers are required to complete their electronic filing of the TD4 for the year 2022, along with the Summary Information Table (SIT), by 31st March 2024.
In summary, the recent Decree published in the Cyprus Official Gazette marks a significant development in the sphere of taxation. The extension of the filing deadline for Corporate Income Tax returns for specific taxpayers, coupled with the introduced penalty for non-compliance, aims to strike a balance between providing relief and ensuring timely adherence to regulatory requirements. Businesses impacted by related party transactions must take note of the extended deadline and strive to meet the new submission timeline to avoid potential penalties.
Navigating the intricacies of related party transactions and ensuring compliance with the recent regulatory changes can be a complex undertaking. At Eurofast's Cyprus office, our dedicated team of experts is always at hand to provide invaluable guidance and professional support in the most meticulous manner.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
