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Provisional Tax Returns 2018

Newsletter 27

 

13 July 2018
 

PROVISIONAL TAX RETURNS 2018

Deadline for submission and payment

According to Cyprus Income Tax Law, the provisional tax returns for the tax year 2018 should be completed where applicable and submitted to the Tax Department on or before 31 July 2018.

The provisional tax is payable in two equal instalments on or before:

  • 31 July 2018: payment of first instalment
  • 31 December 2018: payment of second instalment

Companies that are expecting to have taxable income and invdividuals that are expecting to earn taxable income other than income from employment, are required to submit a provisional tax return. Where a taxpayer has taxable income but the tax liability is fully discharged by overseas tax credits, a provisional tax return, must be submitted even though no tax will be due.

If any instalments are not paid within the prescribed date, interest is charged at a rate of 3.5% per annum from the original due date (imposed on a complete month basis) plus penalty/fine 5%.

If the provisional taxable income declared is less than 75% of the final taxable income for the year, then the taxpayer is required to pay an additional amount equal to 10% of the difference between the final tax due and the provisional tax paid.

Revised computations can only be submitted at the Tax Department by the 31 December 2018.

Moreover, we would like to inform you that payments can only be made through the JCC Smart electronic portal https://www.jccsmart.com/.

We remain available for any clarification or any assistance should be needed.