Taxpayers must submit their 1st and 2nd temporary tax return before the 31st of July and 31st of December of each year, respectively, 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’s profit in two equal installments.
In case the temporary tax payments were made based on an incorrected estimated yearly taxable profit then the estimated taxable income can be revised (upwards/downwards) any time prior to 31st of December of the current tax year.
However, in case the 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. Therefore, it is 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.
For timely tax payments (i.e. not pass due their statutory deadlines), the tax must be paid electronically via https://www.JCCSmart.com by paying the amounts under code 0200 for the respective tax year.
JCC Smart is the card payment processing system that facilitates the electronic settlement of taxes through debit/credit cards.
For tax payments which are pass due their respective deadline, the tax can not be settled via JCC. For overdue payment, the tax must be recorded on the Tax Portal to calculate the final tax and applicable penalties. Then the final tax can be paid through the tax payer’s bank portal to the tax department by entering the reference number shown on the Tax Portal for each particular payment.
Using our calculator
Use our 2nd temporary tax calculator to estimate the 2nd provisional tax payment for 2020.
The calculator takes into account the chargeable income for the year, losses from previous year and any interest & penalties applicable in case the payment is not made on time. In addition, if the taxable income was revised under the 2nd tax assessment, then the form will also calculate any interest which is applicable on the portion of tax which should have been paid under the 1st assessment.
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.