Whether in Cyprus or elsewhere globally, submitting tax objections is your ticket to reclaiming your hard-earned money and ensuring fairness in the tax system.
Don’t let overburdened tax bills or inaccuracies in your tax assessment go unchecked. By voicing your concerns through the proper channels, you are not just standing up for yourself;
you are contributing to a more equitable tax environment for everyone.
As per Circular 8/2023 from the Cyprus Tax Department, issued on October 20, 2023, we aim to offer vital insights on tax objections, particularly pertaining to tax forms TD1 (for individuals) and TD4 (for companies). In this context, the term “person” is further on referred to both individuals and companies.
To be eligible for tax appeals, specific conditions must be met:
Initially, the objection must clearly state and assess the grounds for disputing the Tax Department’s calculation of the imposed tax. One of the options is claiming that the tax is assessed based on higher income or lower deductions, allowances, or credits. In this case, the person should specify, based on his/her calculations, the precise income and/or deductions/allowances involved, accompanied by relevant supporting documentation. The other scenario suggests contesting the obligation to pay the tax altogether.
On another note, any objections sent to the Tax Authorities within the stipulated time limit will be officially acknowledged and recorded, irrespective of whether the accompanying documentation is initially provided. Subsequently, the Tax Department will issue a request for the said documentation, which must be furnished within 60 days. The deadline for submitting objections is by the final day of the following month from the date the tax was imposed.
To keep you informed, note that the revised TD1 and TD4 forms are exempt from the objections procedure and are treated differently by the Tax Department.
Eurofast team provides a wide range of services including but not limited to full tax compliance encompassing preparation of income tax returns and objections to the taxes imposed. We help businesses with tax appeals to ensure that you pay what you owe and not a cent more for the sake of a transparent, accountable, and economically sound future. For any inquiries, please contact Eurofast tax team in Cyprus at nicosia@eurofast.eu
Nicholas Marcou
Corporate Accountant
Eurofast Nicosia
nicosia@eurofast.eu