We inform our clients that according to the Cyprus Income Tax Law the dates of submission and payment of the provisional tax for the year 2021 are as follows:

31/07/2021 Submission of return and payment of 1^st installment

31/12/2021 Payment of 2^nd installment – last day of revision of provisional tax (if needed)

The provisional tax is calculated on the profits that are expected to arise in the year 2021 for companies and self-employed persons.

Remember that the corporate tax rate is 12.5%.

The late submission of the return and the late payment of the installments are liable to a penalty of 5% plus interest of 1.7% on the payable amount.

Legal entities and self-employed who expect to have profits in the year 2020 and do not pay provisional tax will be liable to 10% additional tax on the tax payable for the specific year. The same applies for provisional tax payments that will not cover at least the 75% of the final profit for the year 2021.

You are therefore advised to estimate your company’s and/or personal taxable profits (if self-employed) for the year 2021 and the relevant tax thereon and inform us as soon as possible of your expectations.