Provisional Tax 2018
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 2018 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 2018 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 3.5% on the payable amount.
Legal entities and self-employed who expect to have profits in the year 2018 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 2018.
You are therefore advised to estimate your company’s and/or personal taxable profits (if self-employed) for the year 2018 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.
Our Clients are requested to contact the latest by Friday 20th of July 2018 at [email protected] or call us at 00357 25 206 822