We kindly remind you that under the provisions of the Income Tax Law, every Company must submit to the Tax Authorities by 31st July a preliminary self-assessment, declaring the Company’s estimated Taxable income of the current year as well as the respective Tax payable. The general income tax rate for all companies for 2022 is 12.5%.
Note that the non-submission of such return is considered as submission of zero declaration, that is to say zero taxable income and zero tax.
The estimated Tax payable must be paid in two equal instalments on or before 31st July 2022 and 31st December 2022. Effective deadline, without interest or penalty being imposed, is one month later.
The original declaration can be revised at a later stage before December 31st of the current year. However, the revised Taxable income will be apportioned equally over the two instalments and the difference on the instalments already paid will attract interest at 1.75%.
The declared Taxable income must not be less than 75% of the final Taxable income as determined by the audited Financial Statements otherwise an additional tax of 10% on the remaining tax payable will apply. We remind you that the tax return for 2022 needs to be submitted by 31st March 2024 although interest on the amount due is calculated from 1st August 2023.
In view of the above you are requested to either provide us with your estimated Taxable Income for the year or to provide us with the necessary information to assist you in establishing the estimate.
George Yiallourides Yiannis Charalambous
Managing Director Tax Manager
T: 0035725443132 T: 0035725443132