According to the Cyprus Income Tax Law, Cyprus companies have the obligation to submit a temporary tax assessment/estimation of their 2021 chargeable income.
The temporary tax assessment/estimation is payable in two equal installments, before or at the following dates:
– 31 July 2021
– 31 December 2021
A 10% surcharge is imposed on the difference between the tax as finally determined in the relevant annual report (financial statements) and the temporary tax assessment/ estimation when the temporary assessment / estimation is less than the 75% of the final chargeable income. The final tax liability for the tax year 2021 should be settled until 1 August 2022.
For Companies which pay their taxes after the due dates, penalties and interest are imposed. Revised tax assessment / estimations can be submitted at the Cyprus Tax department on or before 31 December 2021. If the estimated taxable income is revised upwards, 1,75% yearly interest is payable on the amount initially declared from the due date of the payment of the 1st instalment.
Please note that, each company has responsibility to estimate its results for the tax year 2021 and proceed with a payment of temporary tax, if needed. The company is also liable for any interest or penalty which may arise due to incorrect calculations or estimations.
If according to the company’s estimates there is no taxable income or any tax due, the company is not required to make a declaration.
Please contact us if you need any assistance in calculating your Cyprus Company taxable income and tax payments.
Telephone + 357 22760100
The authors expressly disclaim all and any liability and responsibility to any person, entity or corporation who acts or fails to act as a consequence of any reliance upon the whole or any part of the contents of this document. Accordingly no person, entity or corporation should act or rely upon any matter or information as contained or implied within this publication without first obtaining advice from an appropriately qualified professional person or firm of advisors.
PKF abas limited is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. This publication is for information purposes only and should not be considered as professional advice.