As per the Assessment and Collection of Taxes Law, Cyprus tax resident companies have the obligation to calculate their expected taxable income of the current year and pay temporary tax (12.5%) on this in two installments, namely on the 31st of July 2021 and 31st of December 2021.
If the tax is not paid before the end of the month following the month the installment is due (i.e. 31 August 2021 and 31 January 2022) interest is payable at the rate in force which as of the date of writing of this article is 1,75%.
Furthermore, in addition to the above mentioned interest, a 5% monetary charge on the tax due is imposed in the case of non-payment.
The estimate of the taxable income may be revised at any time before the 31st December 2021. If the estimate is revised upwards, interest is payable on the difference between the revised amount payable for each installment due and the amount initially declared and paid.
If the estimated taxable income is less than 75% of the actual taxable income as declared on the submitted tax return of the year, then an additional 10% on the difference between the temporary tax and actual tax is imposed.
Any difference between the actual tax payable and the temporary tax paid for the year 2021 is payable by 1 August 2022 via the self-tax assessment method.
Temporary tax is paid only by using the JCC Smart website (www.jccsmart.com)
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