Cyprus companies are required to apply a temporary tax assessment of their 2023 chargeable income under the Cyprus Income Tax Law. We would like to remind about the upcoming deadline for submission of the 2nd declaration concerning provisional tax for the year 2023.
The submission of return and payment of final instalment must be settled until the 31st of December 2023.
Entities that do not make a profit in 2023 do not need to file a provisional tax return.
Two instalments
The temporary tax assessment 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 shall be updated (upwards/downwards) at any point before the end of the current tax year on December 31st.
Penalties for late submission and low estimation of chargeable income
The late submission of the return and the late payment of the instalments are liable to a penalty of 5% plus interest of 2,25% on the payable amount.
Legal entities who have profits in the year 2023 and do not pay provisional tax will be liable to the additional amount of 10% on the tax payable for the specific year. The same consequences apply for provisional tax payments that will not cover at least the 75% of the final tax for the year 2023.
Need help with provisional tax return?
Please do not hesitate to contact us if you need additional information about the provisional tax or assistance in calculating and submitting the return. Also, if you wish to revise the first installment of Provisional Tax of the company, we are ready to advise.
For further enquiries, please contact us by email on [email protected] or call our office in Cyprus on +357 222 58 777.
