Provisional tax returns 2021 and payment of first instalment
We would like to inform you of the deadline for submission of the 2021 provisional tax return, which is due on 31st July 2021.
Due dates for submission and payments
Cypriot tax resident companies need to estimate their taxable profit for the year 2021 and submit a provisional tax return (TD6 form) by 31st July 2021. The resulting tax liability needs to be paid in two equal instalments, by 31st July and 31st December 2021 respectively.
If, after payment of the two instalments, there is a tax liability remaining, this should be settled by 1st August 2022.
Estimation of taxable profit
The estimated taxable profit needs to be at least 75% of the final taxable profit. If the estimated tax turns out to be lower than the actual tax liability, a penalty of 10% will apply on the underestimated tax payable.
Companies have the right to revise their provisional tax return at any time before 31st December 2021, either upwards or downwards, by completing and submitting a revised provisional tax return.
If the estimated is revised upwards, interest at 1,75% will be payable on the difference between the revised amount payable and the amount initially declared from the due date of payment of the 1st instalment.
If it is not expected that the company will generate taxable income for the year 2021, there is no need to file a provisional tax return or to pay any instalments.
What is required
In case you expect that a taxable profit will be generated for the year 2021, please let us know the soonest in case you will need our assistance with the preparation and submission of the temporary tax return and with payment of the first instalment.
Do not hesitate to contact us for any questions regarding your tax submission obligations.