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Cyprus Income Tax 
Post: #1   PostPosted: Sat Apr 19, 2008 9:33 am Reply with quote
Campbell Findlay
Joined: 24 Jan 2007
Posts: 3621
Pictures: 0
Location: Kapparis January 2007

 
Thought I would update you all on my journey from UK Inland Rev. to Cyprus Inland Rev.
Two weeks ago I received a repayment of all the uk income tax I had paid on my pension since moving to Cyprus on 15th.January 2007-very nice too it was!!
The 'system' didn't take long to catch up 'cos on Wednesday gone I received a four page document from The Cyprus Ministry of Finance -Inland Rev.Dept.It was headed INCOME TAX RETURN - EMPLOYEE and the form number is (I.R.1A employee)2007.At first glance it was a bit frightening and it was accompanied by a document in Greek which didn't help.Anyway,after I had studied it and made up my mind which parts were relevant to me I asked the missus to have a look at it.We actually agreed on something!!!Just to make double sure I took it to Paralimni Inland Rev.and asked the girls there to check it for me.Interestingly they need all calculations to be made in Cypriot pounds using .85 as an exchange rate.I requested the reduced rate of tax (first 2000 pounds tax free and the balance at 5%) and a quick bit of work on the calculator showed that my pension is worth 2,500 pounds more over here.Mind you my tax situation is simple in that my sole income is my pension.This form caters for stocks and bonds and properties.The girls at Paralimni were very patient.I asked when I would get my demand - ans. was a smile and a shrug.WHO CARES -another hurdle over.

Cheers,
Campbell.

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Post: #2   PostPosted: Sat Apr 19, 2008 9:41 am Reply with quote
James Court
Joined: 27 Nov 2007
Posts: 114
Pictures: 0
Location: England

 
Well done Campbell, thanks for that reassuring post - very useful.
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Post: #3   PostPosted: Sun Apr 20, 2008 2:19 pm Reply with quote
bigal
Joined: 23 Jul 2006
Posts: 248
Pictures: 1
Location: Paralimni

 
Campbell

Thanks for the update, most helpful.

When you first started applying to change over to the Cypriot Tax system did you have to have a form from the Uk to fill in & if so does it have a code or number & where do we get it from?

Have you been able to do all the paperwork yourself or have you been to an accountant?

Will be doing this myself soon & need all the help I can get - although my sole income is pension I've got 3 of them to try & collate. Uk tax is on all 3 & losing me a fortune Shocked Mad

Bigal

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Post: #4   PostPosted: Sun Apr 20, 2008 3:32 pm Reply with quote
Campbell Findlay
Joined: 24 Jan 2007
Posts: 3621
Pictures: 0
Location: Kapparis January 2007

 
Hi there,
Proud to say I did it all myself.Give me a couple of days to get the copy docs out of my system and I'll get back to you.

Cheers,
Campbell.

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Post: #5   PostPosted: Sun Apr 20, 2008 4:02 pm Reply with quote
bigal
Joined: 23 Jul 2006
Posts: 248
Pictures: 1
Location: Paralimni

 
Thanks Campbell

Theres no rush, can't get going on it till the summer

Cheers,
Bigal

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Post: #6   PostPosted: Thu Apr 24, 2008 5:19 pm Reply with quote
Campbell Findlay
Joined: 24 Jan 2007
Posts: 3621
Pictures: 0
Location: Kapparis January 2007

 
Hi Big Al and other interested parties,
This is an account of my experiences withdrawing from UK tax system and entering Cypriot Tax system.Mine is a simple story because I have only one source of income -my Police pension,but I am sure you can use it as a base line to work from.

First thing I did was to check with the pension provider that they were prepared to transfer my monthly pension overseas.The reponse was Yes -at a price .
I then got in touch with my UK local tax office and got a Tax.Ref.No.
You then have to obtain a form P85 (Leaving the UK) You can get this on line at
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This takes a couple of days.
Fill in the form P85 -note that on the front it says this is an Income tax claim when you have ALREADY left or are ABOUT to leave the UK.We submitted my form on 30/12/2006 and we left the UK on 17/1/2007/
KEEP A COPY OF EVERYTHING!!!!!!
On 5th.March 2007 we received a form DT/Individual from HM Revenue and Customs which had another unique hand printed reference number on it.This form is the important one and is an application for relief,at source,from United Kingdom Income Tax and a Claim to Repayment of UK iNcome Tax already paid.
On Page 1 your tax ref.in your country of residence is the number on you application for residency card which you will get on application from Immigration Dept.This is a totally separate procedure.
You will need certificates of interest from Cypriot bank accounts.
Fill in the DT/Individual and take to your local Inland Rev.Office.Ours is in Paralimni - opposite the Town Hall.The first question I was asked was "when did you arrive in Cyprus with the intention of staying?" I responded by saying "three weeks ago" and was told to return in six months at which time they would process my application.I was told that they needed to see commitment to staying here and did not want to start a long process and be stopped by me changing my mind four weeks down the line.Common sense I thought.
Six months late I went back with my documents,copy of contract etc.filled in a couple of local forms and that was it.I asked when I would hear from someone and I got the Cypriot shrug.
My forms went in in July 2007.
In April I was fully repaid the tax I had been paying on my pension in the uk during the time we have lived in Cyprus.
On 12th.April I received a (Form I.R.1A employee)2008 from The Ministry of Finance -Inland Rev.Dept of Cyprus.The document looks frightening but is not - provided your situation is simple.All figures given have to be supplied in Cyprus pounds at an exchange rate of .85.
Part 4B of that form was relevant to me and I circled a request for reduced rates and stated my pension from 1/1/2007 until 31/12/2007.
Hopefully they will calculate my first income tax demand base od the first 2000 Cyp pounds tax free and the balance taxed at 5%.The girl agreed with my ballpark figure of 748 Cyp.pounds against 3,200 pounds stg for the same period in uk.That is a BIG plus in anyones book.
I asked when I would receive the tax demand for 2007 and I got a big smile and a remark "maybe 2010"!!! My god I love it here.
I was also advised to squirrel a few quid away every year so that you can pay on demand.

I hope this is of some use to you Al -come back with any questions and I will help if I can.I was hesitant to have a go myself,but I have saved myself a few bob by persevering and its good to share the knowledge.

Cheers,
Campbell.

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Post: #7   PostPosted: Thu Apr 24, 2008 5:29 pm Reply with quote
May Wallace
Joined: 30 Aug 2005
Posts: 1539
Pictures: 9
Location: Ayia Thekla

 
Hi Campbell

Well done you - I have saved this to my bookmarks - won't need it for another couple of years - unfortunately Crying or Very sad but well worth knowing and good to hear from someone's experience.

Thanks again

May Wink
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Post: #8   PostPosted: Thu Apr 24, 2008 5:59 pm Reply with quote
dagwood
Joined: 02 Aug 2007
Posts: 376
Pictures: 0

 
Yup, May Wallace, I have discussed these matters with Campbell privately on several occasions in the last 3 months and he has been an absolute star !! d
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Post: #9   PostPosted: Thu Apr 24, 2008 7:00 pm Reply with quote
alanmorton99
Joined: 26 Jan 2008
Posts: 1598
Pictures: 0
Location: Avgorou

 
I've just bookmarked it as well. I'll have my Forces pension, NHS, Boots the Chemist, AVC and, in another 5 years, my state pension.
Heather will also have several to sort out, so it will be a godsend to us.

You should go on commission, Campbell!!!
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Post: #10   PostPosted: Thu Apr 24, 2008 8:10 pm Reply with quote
Steve - SJD
Site Admin
Site Admin
Joined: 16 Jul 2005
Posts: 24079
Pictures: 55

 
Nice one Campbell! Will add it to the FAQ.

Cheers

Steve
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Post: #11   PostPosted: Fri Apr 25, 2008 6:05 pm Reply with quote
bigal
Joined: 23 Jul 2006
Posts: 248
Pictures: 1
Location: Paralimni

 
Many thanks Campbell, have bookmarked the post.

Thought the form p85 sounded familier & low & behold discovered its one of the forms I had sent to me before leaving the UK. Just need to fill it in & send it off.

Bigal

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Post: #12   PostPosted: Wed Mar 17, 2010 4:43 pm Reply with quote
mduffin
Joined: 15 Nov 2007
Posts: 51
Pictures: 0
Location: Paralimni

 
Hi, can anyone tell me where the Tax Office is as they seem to have moved from opposite the town hall in Paralimni.


Thanks in advance


Michael
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Post: #13   PostPosted: Wed Mar 17, 2010 5:12 pm Reply with quote
kipper889
Joined: 16 Jul 2005
Posts: 3904
Pictures: 5
Location: Hertfordshire/Pernera

 
Just want to say...how great that folks are trawling back through old posts, just shows how useful this site is.

Unfortunately I can't help Michael, someone will be along soon.

Ruth

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Post: #14   PostPosted: Wed Mar 17, 2010 5:27 pm Reply with quote
LynSab
Joined: 16 Apr 2007
Posts: 4739
Pictures: 1
Location: Vrysoulles, Cyprus/Wales UK

 
mduffin wrote:
Hi, can anyone tell me where the Tax Office is as they seem to have moved from opposite the town hall in Paralimni.


Thanks in advance


Michael


Michael its now nearly in Derynia going out of Paralimni towards Derynia past the fire station on you right keep on going, there is as you know a minefield of roadworks and 'ooops we,re going this way today' diversions Rolling Eyes but the present diversion still in place as of today will divert you right, off the main road, on this corner you will see Fiesta Shoes the building behind is the tax office. There is a car park opposite. You go in thru the main doors into a vast reception area and always seem to get directed around the back of the building. HTH
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Post: #15   PostPosted: Wed Mar 17, 2010 8:35 pm Reply with quote
baileyboy
Joined: 26 Nov 2009
Posts: 1797
Pictures: 0
Location: avgorou

 
Lynsab's directions are spot on. Take the road sign posted for the hospital and the Inland Revenue is on your right. Go to the back of the building(there is car parking there) and the IR is on the 1st floor.
I was there last week and have to do a tax return for 2008(moved to Cyprus 23/01/2008) and2009. Fill in Form IR163. Once I have done this I have to provide proof of all pensions, registration as an alien(how I hate that term) passport, contract of sale and an 80 Euro stamp!!! Does anybody know anything about this 80 Euro stamp?
I believe I also have to download Form P85 from the UK IR as well.
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Post: #16   PostPosted: Thu Mar 18, 2010 7:46 am Reply with quote
tonyl
Joined: 23 Apr 2007
Posts: 338
Pictures: 0
Location: Frenaros at last, was Poole, Dorset

 
Hi BailyBoy

Yes you need to get 80 worth of postage stamps, this is the cost of registering, a small price to pay as I have gone from paying around 2000 tax in the UK to zero over here.

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Post: #17   PostPosted: Thu Mar 18, 2010 8:27 am Reply with quote
trevnhil
Joined: 30 Aug 2005
Posts: 2309
Pictures: 0
Location: Polemi. Paphos area

 
This post of mine is not strictly Income Tax.... But the Defence Levy on savings Interest.

Many people who have savings here will have the defence levy taken from the interest payment. This means that you lose 10% of the interest each year. If your total income including any interest earned is less than 12,000 then you need not pay the full 10%.

You only need to pay at the rate of 3%.

Unfortunately to save paying at the wrong rate, you have to claim back the 7% of the total 10% that is deducted by the banks.

It took us 3 goes with the form and there was a fair bit of paperwork that they required. But it was successful and this week my wife and I had a refund cheque each in the post.

Trev..
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Post: #18   PostPosted: Tue Mar 23, 2010 6:37 pm Reply with quote
bromerzz
Joined: 30 Aug 2005
Posts: 3964
Pictures: 0
Location: Deryneia

 
Received my 2009 Tax Return in the post today.
To save me a walk to the Tax office anyone know the official government to rate for tax last year?
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Post: #19   PostPosted: Tue Mar 23, 2010 6:57 pm Reply with quote
SensibleBob
Joined: 07 Sep 2005
Posts: 1679
Pictures: 0
Location: Avgorou

 
Last year I had completely different responses from various Cypriot officials about the Exchange rate for purposes of the tax return.Paralimni,Larnaca Paphos and Nicosia all told me different figures. The only definite info I could find was in the UK tax sites! The manager (?) at the tax office (when it was Paralimni) said fill out the return using the current rate as advertised in Bank of Cyprus, which I felt was absolute rubbish but he seemed happy with this and needless to say for 3 years we have had no query!!!
Out of interest anyone else had a tax return yet for 2009 as the girls are reluctant to hand them out but they need to be in by 30April!I was told last year that they are currently working on 2006 returns so no real rush.
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Post: #20   PostPosted: Tue Mar 23, 2010 7:55 pm Reply with quote
Campbell Findlay
Joined: 24 Jan 2007
Posts: 3621
Pictures: 0
Location: Kapparis January 2007

 
Yes,I got mine today and went to the Inland Rev. Office to try and answer the question re "rate".Place was closed and is open 0830 until 1330.I will go on Thursday am. unless anyone else wants to go Wednesday am and post on here.

Cheers,
Campbell.

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