We wish to remind all our associates that the deadline for the 1st instalment of the provisional tax for tax year 2023 is the 31st July 2023.
Please make sure that you don’t miss the deadline by planning in advance to carry out the calculations.
Scope of the legislation
According to the Assessment and Collection of Taxes Law the dates of submission and payment of the provisional tax for the year 2023 are:
|31 July 2023||Payment of 1st instalment|
|31 December 2023||Payment of 2nd instalment – last day of revision of provisional tax (if needed)|
|1 August 2024||Settlement of the final tax liability for tax year 2022|
It should be noted that if there is no taxable income, then there is no requirement to submit a temporary tax return.
All companies have the right to revise their estimated taxable income at any time before 31 December 2023.
If the estimated taxable income is revised upwards, 2,25% interest is payable on the difference between the revised amount payable and the amount initially declared from the due date of payment of the 1st instalment.
If the estimated tax paid for 2023, is lower than 75% of the actual tax liability calculated based on the final tax computation for the year 2023, then a penalty of 10% will apply on the underestimated tax payable.
We are at your disposal to assist you with the relevant process.