Cyprus companies are required to apply a temporary tax assessment / calculation of their 2023 chargeable income under the Cyprus Income Tax Law.
The temporary tax assessment/estimation is due in two equal instalments on or before following dates:
- 31st of July 2023,
- 31st of December 2023.
If provisional tax payments were made based on an incorrectly calculated yearly taxable profit, the estimated taxable income will be updated (upwards/downwards) at any point before the end of the current tax year on December 31st.
Computation of Temporary Tax
According to art. 24 of the Assessment and Collection of Taxes Law No.4 of 1978, as amended, the official deadline for submission of the Provisional Tax Returns (Form I.R.6) for the year 2023 and payment of the first instalment is 31st July 2023.
Entities that do not plan to make a profit in 2023 do not need to file a provisional tax return.
Penalties for Late Submission
As per the article 50A(e) of the Assessment and Collection of Taxes Law No.4 1978, as amended, entities that pay their tax after the dates stipulated in the law, are subject to a 5% fine plus interest of 1,75% on the payable amount.
Low Estimation of Chargeable Income
10% surcharge applies on the difference between the tax as finally determined and the temporary tax assessed. The surcharge applies only where the estimation is less than 75% of the chargeable income as finally determined.
Need help with provisional tax return?
Please do not hesitate to contact us by email on firstname.lastname@example.org or call our office in Cyprus on +357 222 58 777 if you need additional information about the provisional tax or assistance in calculating and submitting the return.