Payment of temporary tax for 2022 in Cyprus

Payment of temporary tax for 2022 in Cyprus

In accordance with the Cypriot income tax law, all companies that will have taxable income for the 2022 tax year must file with the tax authorities by July 31, 2022 a temporary tax return form (T.D6). This form is based on estimated taxable income for the current year. You can pay the temporary tax in two equal installments before or on the following dates:

• July 31, 2022 – 1st installment
• December 31, 2022 – 2nd installment

The final tax for the 2022 tax year must be paid by August 1, 2023.

All companies have the right to revise their estimated taxable income at any time until December 31, 2022.

If the estimated taxable income is revised upwards, the difference between the revised amount payable and the amount originally declared from the date of the down payment is subject to interest of 1.75%, plus a fixed penalty of 5%.

If the estimated tax paid for 2022 through the provisional tax return is less than 75% of the actual tax liability calculated from the audited financial statements for the year, a 10% surcharge (penalty) will be charged on the under-reported amount.

Please note that this article is for informational purposes only. For further advice, please contact us at the contacts listed on the site.