According to the Cyprus Income Tax Law, all Cypriot tax resident companies that expect to have taxable income for the year 2021, must proceed with the submission and payment of the provisional tax for the year 2021 in two equal installments before, or on, the following dates:

• 31 July 2021 – Payment of 1st instalment
• 31 December 2021 – Payment of 2nd instalment

It is noted that, the final tax liability for the tax year 2021 should be settled by 1^st of August 2022.

We remind you that the corporate tax rate is 12.5%.   

The late submission of the return and the late payment of the instalments are liable to a penalty of 5% plus interest of 1,75% on the payable amount.

Legal entities who expect to have profits in the year 2021 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 tax for the year 2021.

Revised tax assessments/estimations can be submitted at the Cyprus Tax Department on or before the 31^st of December 2021. Penalties as above apply on the difference from the initial estimation.

If the company does not expect to have any taxable income for the year 2021, there is no requirement to pay temporary tax.

You are therefore advised to estimate your company’s taxable profits for the year 2021 and the relevant tax thereon and inform us as soon as possible of your expectations. You should also remit to our office the sum of money for the payment of the first instalment of tax (if any) the latest by 26^th of July 2021 to be able to complete and submit the return and pay the relevant amount on time.

Payments can be performed through Internet Banking (after obtaining the code from Tax portal) or through JCC smart. Our firm can help with that.

For more information, please contact us at: [email protected]