We would like to inform you about the Temporary Tax Assessment for 2022. The companies must notify the Director of Tax Department by the 31st of July 2022, of their estimated temporary chargeable income, and consequently their resulting temporary tax for the year 2022.

Under the Income Tax law, all Cyprus tax resident companies are taxed at the rate of 12,5%, on taxable income. The temporary tax, which is based on the expected taxable profit for the year, is payable in two equal installments: 1st Instalment by 31st July 2022 and 2nd Installment by 31st December 2022.

Important Notes:

1. Non-payment on the due dates entails payment of interest at the rate of 1.75% per annum as well as a penalty of 5% on tax due.

2. If the estimated income declared in 2022 is less than the 75% of the final chargeable income as determined by the Income Tax return submitted for the year 2022 and as per the chargeable income as assessed by the Director of Inland Revenue, then any balance of tax payable is subject to an additional 10% charge.

3. Revision of the original declaration is possible until 31 December 2022.