TEMPORARY TAX - 2024
We would like to remind you for the requirements of the Cyprus Tax Legislation (Assessment and Collection Law as amended in 2003, article 24) regarding the filing of temporary tax returns and relevant temporary tax payments for the year 2024.
Please note that a Temporary Tax Assessment of the estimated net taxable profit for the year 2024 (if any), should be submitted to the Tax Authorities by 31st of July 2024. The resulting tax is payable in two equal installments as per the following deadlines:
- 1st installment: 31st of July 2024
- 2nd installment: 31st of December 2024
Any final resulting tax liability for the year 2024 should be settled by 31st December 2024.
If the Company fails to do so by submitting the IR6 declarations and its operations result in a taxable profit, then the company will pay a 10% penalty on the assessed tax (thus result in an effective tax rate of 13.75% instead of 12.5%). In addition, if the estimated tax is lower than 75% of the actual tax, this 10% penalty is applicable on the difference between actual tax and temporary tax paid. If for example the estimated tax is 1.000 euros and the Company pays two equal installments of 500 euros, but the actual tax comes out to be 1.500, then there is a penalty of [1.500-1.000]*10% = 50 euros. Revision of the estimated tax is allowed only up to 31 December of the current year.
In addition, for companies that wish to proceed with Provisional Tax payments, but fail to submit the Provisional Tax returns by the due dates stated above, there will be an interest rate of 5% per annum from the original due date (on a complete month basis) plus a one-off penalty of 10%.
It is important to note that NIL returns need not to be submitted. The Income Tax Office however does accept the submission of NIL tax returns from individuals but not for legal entities.
If you would like us to assume responsibility for the preparation of the return and administration of its submission and related payments, please get in touch with us by 7th July 2024 to make the necessary arrangements.
Our fees for the above are:
Preparation, submission and administration of payment of the Provisional Tax return with taxable income: Euros 100-400, depending on the involvement required by us for estimating taxable income.
We will consider no reply to this newsletter by 7th July 2024 as an assumption by you of the responsibility to comply with this obligation. We do not commit to the same prices for any requests in relation to this matter after that date. We kindly request your understanding in this.