Cyprus Provisional Tax / 1st Self-Assessments Form
1st Self Assessment
Temporary Tax Assessments
Taxpayers must submit their temporary tax return before the 31st of July of each year based on their estimated current year’s taxable income and pay the corresponding temporary tax. The temporary tax payments must be made on the estimated current year profit in two equal instalments, on 31st July and 31st December.
The estimated taxable income declared under self assessments can be revised (upwards/downwards) any time prior to 31st of December of the current tax year.
However, in case a revised provisional tax declaration results in a refund of the provisional tax already paid, the refund will be assessed by the Cyprus tax authorities upon their examination of the submitted final income tax return of the company. It is therefore very important that the company calculates its provisional tax declaration on a conservative basis on its taxable profits
It should be noted that if there is no taxable income,then it is not required to submit the temporary tax return.
Final Tax Assessment
The final payment of any tax due must be made on the 1st of August of the following year of assessment , in order to bring the total instalment payments to the level of the actual liability due (as per the actual tax liability determined).
Use our temporary tax assessment form to estimate the first provisional tax payment for 2018.
The form takes into account the chargeable income for the year, losses from previous year and any interest and penalties applicable in case the payment is not made on time.
Penalties and Interest
If the relevant tax instalment payment is not paid by the end of the month from the date the payment is due, then there is interest of the tax instalment due at 3,5% (for 2017 and 2018) per annum which is calculated on a monthly basis (e.g. if the 1st instalment payment is not made by the 31st August 2014, there is interest of 3,5% times 1/12 as the payment has been delayed for one month).
If there is any delay in the payment of any of the aforementioned instalments of provisional tax declaration, then there will be an additional 5% flat penalty on the tax due that should have been paid with any of these instalments. The 5% penalty charge does not carry any interest charges.
If the total taxable income declared (and the corresponding temporary tax paid) is less than three quarters (3/4) of the taxable income (and total corporation tax) as finally determined, the taxpayer must pay, in addition to the normal tax, an amount equal to one-tenth (10%) of the difference between the final and the temporary tax.
- Taxable losses brought forward from previous years cannot be carried forward after the lapse of five years from the end of the tax year during which the loss occurred (i.e. for tax year 2018, only the losses from 2013 and onwards can be utilised).
- The temporary tax form can also be submitted electronically via https://www.JCCSmart.com by paying the amounts under code 0200 for the respective tax year.
- The final payment for tax must be made via self-assessment on 1st of August of the year following the year of assessment (i.e. for the tax year 2017 payment must be made by 1st August 2018).
This form is not a legal or TAX advice and no one should rely on it. This form has been prepared as a general guide for information and purposes only as many other tax aspect should be taken into account. It is not a substitution for professional advice or an advice at all. One must not rely on it without receiving independent advice based on the particular facts of his/her/its own case. No responsibility can be accepted by the authors or the company for any loss occasioned by acting or refraining from acting on the basis of this publication.