PROVISIONAL TAX RETURNS 2015
CA Tsialoupis & Co would like to remind you that the provisional tax returns (IR 5/6) for the tax year 2015 are due to be completed and filed to the tax department on or before 31 July 2015.
Companies that estimate to have a taxable income should estimate the tax and submit the provisional tax return. The same applies to individuals that are expecting to earn taxable income in excess of their employment income.
Where a taxpayer has taxable income but the tax liability is offset by overseas tax credits, a provisional tax return should still be filed even though no tax is due or payable.
There is no need to submit a provisional tax return in case where there is no taxable income for either a company or an individual.
The provisonal tax is payable in two equal installments on the 31 July and 31 December 2015.
If installments are paid outside the deadlines, interest is charged at the rate of 4% p.a from the original due date, imposed on a complete month basis. There is also an additional penalty of 5% on the amount of the tax due.
Where the provisional income declared is less than 75% of the final taxable income, an additional amount of 10% will apply on the difference between the final tax due and the provisional tax declared.
Please contact our tax partner for any clarifications or help in filling out your tax returns.
Find out details about Cyprus Tax by downloading our annual publication Tax Facts 2015.
Important note: This article has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice from a qualified accountant.