All companies that are Cyprus tax residents are taxed in accordance with the Cyprus Income Tax Laws and Regulations. According to these laws and regulations, all companies that will have taxable income for tax year 2018 should submit to the Tax Authorities by 31 July 2018, a temporary tax return form (T.D 6), based on their estimated taxable profits for the current year and pay the temporary tax in two equal instalments before or on the following dates:
• 31 July 2018 – 1st instalment and submission of form
• 31 December 2018 – 2nd instalment
The final tax for tax year 2018 should be settled by 1st August 2019.
All companies have the right to revise their estimated taxable income at any time before 31 December 2018. If the estimated taxable income is revised upwards, 3,5% interest is payable on the difference between the revised amount payable and the amount initially declared from the due date of payment of the first instalment.
If the estimated tax paid for 2018, through temporary tax return, is below 75% of the actual tax liability calculated on the basis of the audited financial statements for the year, then there will be a surcharge (penalty) of 10% on the underestimated tax payable.
If the Company does not expect to have any taxable income for the year 2018, there is no requirement to file a temporary tax return.
Produced by Baker Tilly South East Europe