Industry News

Cyprus provisional tax

Life goes on, but taxes do not want to change so quickly. Deadlines on Cyprus provisional tax submission are approaching.

Cyprus international companies are required to submit provisional self assessments of the likely income for the current year by August 1, and, subsequently, to pay the tax thereon. Provisional tax must be paid by three equal installments by August 1, September 30 and December 31, according to preliminary estimates.

The provisional tax assessment may be revised at any time before 31 December of the fiscal year. Any underpayment may be paid in accordance with the self-assessment before August 1 of the next year, to avoid interest being charged at rate of 5% annually, accrued from that date.

If the income declared for the provisional tax is lower than 75% of the final calculated income based on the Annual Report, the taxpayer must, in addition to the regular income tax, pay the amount of 10% from the difference between final and provisional tax.

Overpaid tax is refunded and there is interest paid on it at 5% annually. So it turns out, one has not yet had time to do either bad or good, but has to pay taxes.

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