We inform our clients that according to the Cyprus Income Tax Law the dates of submission and payment of the provisional tax for the year 2019 are as follows:
Submission of return and payment of 1st installment
Payment of 2nd installment – last day of revision of provisional tax (if needed)
The provisional tax is calculated on the profits that are expected to arise in the year 2019 for companies and self-employed persons.
Remember that the corporate tax rate is 12.5%.
The late submission of the return and the late payment of the installments are liable to a penalty of 5% plus interest of 2% on the payable amount.
Legal entities and self-employed who expect to have profits in the year 2019 and do not pay provisional tax will be liable to 10% additional tax on the tax payable for the specific year. The same applies for provisional tax payments that will not cover at least the 75% of the final profit for the year 2019.
You are therefore advised to estimate your company’s and/or personal taxable profits (if self-employed) for the year 2019 and the relevant tax thereon and inform us as soon as possible of your expectations.
Note that from 1 June 2018, the payment of the provisional tax will be effected ONLY via the JCCsmart service. Therefore, you should remit to our office client account the sum of money for the payment of the first installment of tax (if any) the latest by Friday 19th of July 2019 to be able to complete and submit the return and pay the relevant amount on due time. The above deadline must be strictly met, as the transfers of funds and/or deposits of cheques to the client account require 2-5 working days for the bank procedures to be completed and make the funds available for use to our client account, otherwise we cannot guarantee the payment of tax by the due date. Note also that remittances of funds from a person (physical or legal) other than the person to whom the taxation is referred, require more detailed procedures to be executed by the bank for verification of the client and the source of funds and therefore additional time is required for availability of the funds for payment.