In accordance with the Assessment and Collection of Taxes Law, all companies are required to notify the Commissioner of Taxation of their estimated chargeable income, and consequently their resulting temporary tax for the year 2022, by 31 July 2022.
Based on the temporary tax computation, tax is payable in two equal installments as follows:
- 1st Installment 31 July 2022 and the payment can be made till 31st August 2022 with no any interest and / or penalty charges.
- 2nd Installment 31 December 2022 and the payment can be made till 31st January 2023 with no any interest and / or penalty charges.
Important notes:
- Non-payment on the due dates entails payment of interest at the rate of 1,75% 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 2022 is less than 75% of the final chargeable income as determined by the Income Tax return submitted for the year 2022 and as per the chargeable income as assessed by the Commissioner of Taxation, then any balance of tax which is payable is subject to an additional 10% charge.
- Revision of the original declaration is possible until 31 December 2022, with any revised tax amounts be equally apportioned over the two installments, thus attracting 1,75% p.a. on past due installment.
- Overpaid tax is refunded together with interest of 1,75% per annum.
- Under the Income Tax law, all Cyprus tax resident companies are taxed at the rate of 12.50% on taxable income.
We are at your disposal for any further information you may need.
