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We would like to remind you about the deadline of the second installment of temporary tax for the year 2018 that is the 31st of December 2018.

Temporary tax

The deadline applies to Cyprus companies which they estimate that taxable income will arise for the year 2018.

 Temporary tax is not applicable to Cyprus companies that do not expect to have taxable income for the year 2018.

Therefore, based on their estimate taxable income, Cyprus Companies should pay temporary tax in 2 equal installments that are due on the following dates:

• 31 July 2018 (First installment) 
• 31 December 2018 (Second installment)

Revised temporary tax

At any time up to the 31st of December 2018, Companies have the right to revise their estimated taxable income. 

If the estimated taxable income is revised upwards, interest of 3,5% is payable on the difference between the revised amount payable for each installment due and the amount initially declared and paid.

If the estimate is revised downwards, the lowest amount that can be declared as temporary tax should equal the amount of the first installment already paid and therefore the second installment of temporary tax to be Nil. 

Significant note

If the estimated taxable income (as finally revised), is lower than 75% of the actual taxable income as it will be declared in the tax return IR4 for the year 2018, then the final tax payable will be subject to additional 10% penalty charge.

The final due date for tax liability payment for corporation tax of 2018 is the 1st of August 2019.

Payment of the second installment of temporary tax

The second installment of temporary tax for 2018 can be paid up to the 31st of January 2019, only electronically via JCC smart.  

We are at your disposal to assist you with for any further information or clarification you need.