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Tax Alert – 2024 Provisional Income Tax

As per the Assessment and Collection of Taxes Law, every Cyprus Tax resident company must file before 31 July 2024 a declaration of provisional tax assessment form to the tax authorities. This should indicate an estimate of the taxable profit for income tax purposes and the resulting tax liability for current tax year.

Companies that are not expected to have taxable profits in 2024, are not required to submit a Temporary Tax return and take any action on this email.

Payment deadlines

If the Company is expected to be profitable in 2024, provisional tax is payable in two equal instalments, 31st July 2024 (if paid by 31 August 2024 no penalties apply) and 31st December 2024 respectively. 

Any final resulting tax for the year 2024 should be settled by 01 August 2025.

Interest & Penalties

Payment of the taxes after the due dates are subject to a 5% penalty which is actually imposed if payments are not made within a month of the due date (31st  August 2024 and 31st January 2025).

The provisional tax assessment can be revised prior to payment of the 2nd instalment (31st December 2024) via submission of a revised form to the authorities. In the case of an upward estimation of tax payable, a 5% annual interest is payable (pro rata) on the difference between the revised amount payable and the amount initially declared for the 1st instalment.

Payments of less than 75% of the annual tax liability as provisional tax (cumulative in both instalments) will be subject to a 10% surcharge on the resulting tax liability.

As mentioned above, companies which are not expected to have taxable profits in 2024, are not required to submit a Temporary Tax return and pay any temporary tax to the tax authorities.

Contact us

Contact us at contact@asterisk.cy for any assistance you may need.

Disclaimer

The above is for reference and information purposes only and does not constitute any form of advise.

As per the Assessment and Collection of Taxes Law, every Cyprus Tax resident company must file before 31 July 2024 a declaration of provisional tax assessment form to the tax authorities. This should indicate an estimate of the taxable profit for income tax purposes and the resulting tax liability for current tax year.

Companies that are not expected to have taxable profits in 2024, are not required to submit a Temporary Tax return and take any action on this email.

Payment deadlines

If the Company is expected to be profitable in 2024, provisional tax is payable in two equal instalments, 31st July 2024 (if paid by 31 August 2024 no penalties apply) and 31st December 2024 respectively. 

Any final resulting tax for the year 2024 should be settled by 01 August 2025.

Interest & Penalties

Payment of the taxes after the due dates are subject to a 5% penalty which is actually imposed if payments are not made within a month of the due date (31st  August 2024 and 31st January 2025).

The provisional tax assessment can be revised prior to payment of the 2nd instalment (31st December 2024) via submission of a revised form to the authorities. In the case of an upward estimation of tax payable, a 5% annual interest is payable (pro rata) on the difference between the revised amount payable and the amount initially declared for the 1st instalment.

Payments of less than 75% of the annual tax liability as provisional tax (cumulative in both instalments) will be subject to a 10% surcharge on the resulting tax liability.

As mentioned above, companies which are not expected to have taxable profits in 2024, are not required to submit a Temporary Tax return and pay any temporary tax to the tax authorities.

Contact us

Contact us at contact@asterisk.cy for any assistance you may need.

Disclaimer

The above is for reference and information purposes only and does not constitute any form of advise.