Deadline for Provisional tax 2021
According to the Cyprus Income Tax Law the dates of submission and payment of the provisional tax for the year 2021 are as follows:
- 31 July 2021- Submission of return and payment of 1st instalment
- 31 December 2021-Payment of 2nd instalment – last day of revision of provisional tax (if needed)
It should be noted that if there is no taxable income, then there is no requirement to submit a temporary tax return. In addition, the final tax liability for the tax year 2021 should be settled by 1 August 2022.
All companies have the right to revise their estimated taxable income at any time before 31 December 2021. If the estimated taxable income is revised upwards, 1,75% 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 2021, is lower than 75% of the actual tax liability calculated on the basis of the final tax computation for the year 2021, then a penalty of 10% will apply on the underestimated tax payable.
Submission of return
We remain at your disposal for any further clarifications may be needed.