Essential: Cost Of Momentary Tax For The 12 months 2022 – Tax Authorities

15 July 2022

Areti Charidemou & Associates LLC

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According the Cyprus Income Tax Laws, all companies that will
have taxable income for tax year 2022 should submit to the Tax
Authorities by 31 July 2022, a temporary tax return form (T.D6),
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 2022 – 1st instalment
31 December 2022 – 2nd instalment

The final tax for tax year 2022 should be settled by
1st August 2023.

All companies have the right to revise their estimated taxable
income at any time before 31 December 2022.

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 first instalment plus a fixed penalty of 5%.

If the estimated tax paid for 2022, 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 you believe that the company/ies may have taxable profits for
2022, please contact us as soon as possible to discuss what return
should be filed.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.