Tax Declaration for the year 2021 – Exemption

In accordance with Decree no. 373/2022 issued by the Council of Ministers on 23 September 2022, individuals with an annual gross income not exceeding EUR 19,500 are exempted from the obligation to file a personal income tax return (TD1) for the tax year 2022. 

This is despite the fact that as of 2020, the legislation stipulates that the filing of an income tax return for hired and self-employed persons is mandatory for all taxpayers, regardless of income. 

The decree was published in advance so that citizens could start planning to avoid delays or misunderstandings. The tax department is expected to post tax returns for the 2022 tax year in April 2023 to the system. 

Filing tax returns for 2021 

It is worth emphasizing that this is not the first time that such a “privilege” has been introduced by the Cypriot authorities. In the previous year, the Council of Ministers of the Republic adopted a similar resolution, according to which individuals were not subject to the obligation to submit declarations for 2021, provided that the income level does not exceed 19,500 EUR. 

This year, the filing of income declarations for 2021 began in April and ended at the end of August. It was previously agreed that the filing of declarations would be completed around the end of July, however, due to non-compliance with the deadlines for most taxpayers, the Ministry of Finance extended the deadline by a month. 

According to the Department of Revenue, a total of 280,000 taxpayers processed their 2021 tax returns, of which 275,000 proceeded to the final filing stage.