Any taxpayer who has or had the obligation to withhold SDC and GHS contributions, on interest/dividends declared from 1 January 2019 onwards, is obliged to electronically submit forms T.D.602 and T.D.603. Deadline is 31st January 2022.
Forms relating to the month January 2022 and onwards shall need to be electronically submitted by the end of the month following the month in which the withholding was made.
It should be noted that in case the payments have already been made, these should be reflected automatically in the forms T.D.602 and T.D.603. In case the SDC and GHS contribution is due after the electronic submission of the forms T.D.602 and T.D.603, the relevant liability should be automatically created and reflected in the tax portal system. The payment of the relevant liability can be made via online banking from a Cypriot bank account, or JCC Smart application/website or wire transfer from a foreign bank account.
Additional information:
The taxpayer has the right to submit multiple forms for the same tax year. The submission of an additional form does not overwrite the prior submitted tax return but rather represents a supplementary declaration (e.g. in case a company made 3 separate dividend declarations during 2020 for different months, then 3 separate T.D.603 forms shall need to be submitted via Taxisnet).
Forms T.D.602 and T.D.603 can accept negative amounts in relation to prior payments, for which there are grounds for correction, provided that the statute of limitation of 6 years has not elapsed from the withholding date.
The penalty for failure to submit the relevant forms within the due date will amount to EUR 100 for each form that ought to have been submitted. In addition, in case of delay in payment of SDC and GHS contribution due, a penalty equal to EUR 100 and a flat 5% penalty on the amount due is imposed. Interest is also imposed based on the official rate set by the Minister of Finance calculated based on completed months (the official rate as of 1.1.2020 being 1,75%).