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 2020 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 2020 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 1.7% on the payable amount.
Legal entities and self-employed who expect to have profits in the year 2020 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 2020.
You are therefore advised to estimate your company’s and/or personal taxable profits (if self-employed) for the year 2020 and the relevant tax thereon and inform us as soon as possible of your expectations.