Payment of 1st provisional tax installment for 2023
We would like to remind you that the payment deadline for the 1st provisional tax installment for the tax year 2023 is the 31st of August 2023.
The timely payment of provisional tax can be made by firstly creating the provisional tax obligation through the Tax Portal of the Tax Department (TD) and then selecting one of the below payment methods from the icons appearing next to the Payment Reference Number (PRN):
- Credit/debit card by selecting which automatically transfers you to jccsmart gateway, or
- online banking.
Tax provisions on temporary taxation
Every Cyprus company with taxable income is required to calculate the estimated profits of the same year and pay the corresponding tax in two equal installments on July 31 and December 31. If the expected taxable profit declared in the temporary tax return is less than 75% of the company’s final tax profit, then an additional tax of 10% is added to the final tax to be paid.
The provisional tax is payable in two equal installments, as follows:
| Provisional tax instalments | Statutory deadline | Effective deadline (No interest/penalty) |
| 1st instalment | 31 July 2023 | 31 August 2023 |
| 2nd instalment | 31 December 2023 | 31 January 2024 |
Late payments (made after the effective deadline) are subject to a 5% penalty as well as interest (at 2,25% per annum for 2023). An additional 5% penalty may be imposed if the tax remains unpaid, two months after the statutory deadlines. (i.e. for the 1st instalment, the penalty will be imposed from 1 October onwards). Any difference between the actual tax payable and the temporary tax paid for the year 2023 is payable by 1st of August 2024.
Revised provisional tax calculation
Taxpayers can revise their provisional tax calculation (upwards/downwards) until 31 December 2023. In case of an upward revision, interest is payable on the difference between the revised amount payable and the amount initially declared and paid. It is noted that for downward revisions, Forms TD.5 (for individuals) and TD.6 (for companies) should be submitted.
How can we help?
We are at your disposal to assist you with the calculation of the provisional tax and the administration of the provisional tax payments.
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