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Tax Return Cycle

​The Non-Filer concept

The Non-Filer system applies to a taxpayer who is not required to file a Tax Return, as all the relevant data related to his income, deductions and tax credits is available to the Commissioner for Revenue.

A taxpayer who qualifies as a Non-Filer and who therefore is served with a Tax Statement instead of a Tax Return is not subject to the obligations of the Self-Assessment.

In the eventuality that a Non-Filer does not agree with the Tax Statement sent to him by the Commissioner, he is requested to fill in and submit an AF (Correction Form) to include the necessary adjustments. The AF is generated by the department’s computer system and shows details of income and deductions on which the tax due was determined. Following the filing of an AF a refreshed new tax statement is issued. This will reflect the changes made by the taxpayer himself.

 

Tax Return Filer

As from year of assessment 1999, the Self-Assessment system was introduced in order to determine the tax due. Under the Self-Assessment system every taxpayer who files a Tax Return is required by law to make his own ‘assessment’ for tax purposes.

The Commissioner considers such Self-Assessment as indicating the correct tax position of the individual.

Individual taxpayers are obliged to send their Tax Return and self-assessment by 30th June.

The tax return is to contain such particulars, statements, accounts, computations or other documents as may be necessary to enable such person’s income, allowable deductions and the tax payable/refundable to be readily ascertained. As a person who makes a self-assessment knows what the tax due is, his main obligation is to pay the tax due according to the self-assessment and thus need not depend on any determination on the part of the Commissioner. The Tax Settlement Date is the 30th June.

After the 30th June, any unpaid amount of tax will incur an additional interest of 0.54% every month. If the tax return is not submitted in time additional tax for late filing will be imposed.

A tax statement will follow the filling of the tax return. This will reflect the declarations made by the taxpayer himself, and only arithmetical adjustments can be made by the Commissioner at this stage.

If it results that tax had been overpaid and the income tax return was submitted in time to the Commissioner, the overpaid tax will be refunded by not later than the 31st of December. Interest at the rate of 0.54% per month will start to accrue in taxpayer’s favour from the following January 1st in the case that the refund is issued after this date. Please note that the said refund will not be issued unless the taxpayer has submitted all his income tax and VAT returns, where applicable.

 

Tax Return Year of Assessment 2019

 

It is important to note that the tax statement is not an assessment raised by the Commissioner but it simply reflects uncontested figures supplied to the Commissioner for Revenue.

A Tax Statement for the year is not in any way final.

In cases where a taxpayer does not agree with the Tax Statement he may correct this by filing an AF form (Correction Form). This type of form is used in cases where the Commissioner has not issued a correct tax statement as per taxpayer’s self-assessment.

If a taxpayer who has filed a tax return needs to effect adjustments, corrections or additions to the self-assessment, before or upon receiving a tax statement he will be required to lodge an AF 1 (Adjustment form). This is a prescribed form.   Article 13 (3) of the ITMA refers to this form as a “further return”.

 

Provisional Tax and Social Security Contributions Booklet