Provisional tax return for the year 2019

Provisional tax return for the year 2019

According to the Cyprus Income Tax Laws and Regulations, all Cyprus tax residents companies that will have taxable income for tax year 2019 should submit to the Tax Authorities by 31 July 2019, a Provisional tax return form (T.D 6 form), based on their estimated taxable profits for the current year and pay the provisional tax in two equal installments before or on the following dates:

• 1st installment and submission of the form – 31st of July 2019 –
• 2nd installment – 31st of December 2019

It is noted that, the final Corporation Tax for tax year 2019 is due to be settled by 1st of August 2020.

Kindly note that all companies have the right to revise their estimated taxable income at any time before 31 December 2019.

If the provisional taxable income is revised upwards, 2% 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 installment.

If the provisional tax paid for 2019, 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.

It advisable for each company to proceed with an estimation of its results for tax year 2019 and proceed with a payment of temporary tax, if needed.

The Company is also liable for any interest or penalties arising because of wrong calculations/estimations.

If the Company does not expect to have any taxable income for the year 2019, there is no requirement to file a Provisional tax return.

Should you need any help, please contact us in order to assist you with the submission of the relevant return and the payment of provisional taxes.