Temporary Tax Assessment 2018Giorgos Agapiou
The Temporary Tax Assessment for the tax year 2018 is approaching. We urge you to give due consideration to the matter so as to ensure that the payment of the relevant tax liability is performed in a timely manner.
In accordance with Taxes Law, all companies must notify the Commissioner of Taxation of their estimated chargeable income, and consequently their resulting temporary tax for the year 2018, by 31 July 2018. Based on the temporary tax computation, tax is payable in two equal installments as follows:
- 1st Installment: July 2018
- 2nd Installment: 31 December 2018
You should also note that:
- Non-payment on the due dates entails payment of interest at the rate of 3,5% per annum
- Non payment on the due dates will also attract a monetary charge at the rate of 5%
- If the estimated income declared in 2018 is less than 75% of the final chargeable income as determined by the Income Tax return submitted for the year 2018 and as per the chargeable income as assessed by the Commissioner of Taxation, then any balance of tax payable is subject to an additional 10% charge.
- Revision of the original declaration is possible until 31 December 2018, with any revised tax amounts be equally apportioned over the two installments, thus attracting 3,5% p.a. on past due installments
- Overpaid tax is refunded together with interest of 3,5% per annum as from 1st January 2019.
Under the Income Tax law, all Cyprus tax resident companies are taxed at the rate of 12,5% on taxable income.
It is strongly recommended that you give due consideration to the matter, and we urge you to contact us in order to make all necessary arrangements for the filing of the returns on time and prompt payment of the relevant tax.