According to the Cyprus Income Tax Laws, all companies that will have taxable income for tax year 2020 should submit to the Tax Authorities by 31 July 2020, a temporary tax return form (T.D6), based on their estimated taxable profits for the current year and pay the temporary tax in two equal instalments before or on the following dates:
- 31 July 2020 – 1st instalment
- 31 December 2020 – 2nd instalment
The final tax for tax year 2020 should be settled by 1st August 2021.
All companies have the right to revise their estimated taxable income at any time before 31 December 2020.
If the estimated taxable income is revised upwards, 1,75% interest is payable on the difference between the revised amount payable and the amount initially declared from the due date of payment of the first instalment. If the estimated tax paid for 2020, through temporary tax return, is below 75% of the actual tax liability calculated on the basis of the audited financial statements for the year, then there will be a surcharge (penalty) of 10% on the underestimated tax payable.
Originally published by Areti Charidemou, July 2020
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.