TEMPORARY TAX ASSESSMENT - 2022

We would like to remind you for the requirements of the Cyprus Tax Legislation (Assessment and Collection Law as amended in 2002, article 24) regarding the filing of temporary tax returns and relevant temporary tax payments for the year 2022.

Please note that a Temporary Tax Assessment of the estimated net taxable profit for the year 2022 (if any), should be submitted to the Tax Authorities by 31st of July 2022. The resulting tax is payable in two equal installments as per the following deadlines:

  • 1st instalment: 31st of July 2022

  • 2nd instalment: 31st of December 2022

Any final resulting tax liability for the year 2022 should be settled by 1st of August 2023.

Your estimation of the taxable profit (if any) must be as close as possible to the actual net taxable profit of the company and any taxes underestimated may be liable to a 10% surcharge. It is important to note that companies with no taxable profits do not need to deal with the submission of this return.

Revision of the Temporary Assessment form
Following the submission of the provisional income tax return you may submit a revised declaration (upwards or downwards), at any time before 31 December 2022. However, submitting a revised provisional tax declaration with a decreased estimated taxable profit may not result in an immediate refund of the provisional tax already paid until the final tax computations are filed and agreed with the Cyprus tax authorities.

 Interest and Penalties

  1. An administrative penalty of 5% is imposed on each instalment if the company fails to pay the declared tax by the due dates stated above.
  2. Interest on an overdue instalment of the tax is calculated at an annual interest rate of 1,75%, on the basis of completed months.
  3. If the provisional tax declared is lower than the 75% of the actual tax payable for the year, then an additional 10% tax is imposed on the difference of the two.

Note that the temporary tax relies on the management’s best estimate.

For any further information, or if you would like us to proceed with assisting you with the above, please do not hesitate to contact us.

You could proceed with the payment of the provisional tax through JCC.