Dear Clients and Associates,
Companies that are Cyprus tax residents and individuals having income other than employment income, that estimate to have taxable income for the tax year 2023 should calculate, declare and pay the respective temporary tax liability. Please note that, from 2019 and onwards, individuals having income other than employment income need also to submit a provisional tax declaration in order to pay the National Health Contributions relating to such income.
The provisional tax declaration should be submitted to the Commissioner of Taxation through the Tax department Tax Portal https://taxportal.mof.gov.cy/.
The payment of temporary tax liability and contributions are payable in two equal instalments as follows: • Until 31st July 2023 – Submitting of provisional tax declaration and payment of 1st Instalment
• Until 31st December 2023 – Payment of 2nd Instalment
If the payments of the provisional tax and contributions are made within one month, on or before 31st of August 2023 and 31st of January 2024 respectively, no interest & penalties will apply.
If the estimated temporary tax paid for 2023, is less than 75% of the tax as finally determined in the audited financial statements, then a 10% additional tax is imposed to the tax liability.
Revised tax estimations can be submitted at the Taxation Department on or before 31st December 2023.
If the estimated taxable income is revised upwards, 1,75% interest is payable on the difference between the revised amount payable and the initial amount declared from the due date of payment of the 1st instalment.
For further information, clarifications or assistance regarding the calculation and submission of temporary tax declaration as well as the settlement of temporary tax, please contact
CSC Christodoulou Taxation Department by 17th July 2023.