Taxpayers may pay the tax in two equal instalments, the first by the end of July and the second by the end of December of each year.
In anticipation of the deadline for the second instalment for the year 2024 (31-12-2024), it is essential for businesses to contact their tax advisors immediately to avoid non-compliance with tax obligations.
The due process is as follows
All companies must notify the Tax Department of their expected annual taxable income and the resulting tax by the 31st July 2024.
According to the Income Tax law of the Republic of Cyprus, all companies are taxed at the rate of 12.5% on their taxable income.
So, each taxpayer should visit the online site of Cyprus’ Tax Department and should create a provisional tax obligation through the Tax Portal of the site under “Temporary Assessments” with code “0200-Income Tax (individuals and legal Persons)”.
In case of any difference arising between the actual tax payable and the temporary tax payable for the year 2024, any such difference shall be payable by August 1st, 2025.
If the estimated chargeable income declared for the year 2024 is less than 75% of the final determined chargeable income for that same year, then the outstanding tax balance will incur an additional charge of 10%.
The option of revision of the original declaration is available until December 31,2024.
In case of non-compliance, namely late payment, a 5% annual interest will apply, calculated based on a full month, as well as an additional 5% penalty on the outstanding tax amount.
Therefore, all businesses should give due attention to this matter and take the necessary steps in a timely manner, otherwise, they will face the penalties and charges mentioned above.
