Taxpayers must submit a temporary tax return (Form I.R.6 for legal persons and Form I.R.5 for self-employed individuals, attached for reference) before the 31st of July of each year based on the estimated current year’s taxable income and pay the equivalent temporary tax.

Temporary tax for 2014 is payable in two equal instalments, on 31st of July and 31st of December 2014. Estimated taxable income can be revised (upwards/downwards) any time prior to 31st of December of the tax year.

In the event where it appears from your computation that you have no taxable income, you are not required to submit the temporary tax return.

If the taxable income declared for temporary tax purposes is less than three quarters (3/4) of the taxable income as finally determined, the taxpayer must pay, in addition to the normal tax, an amount equal to one-tenth (10%) of the difference between the final and the temporary tax. Any late payments of temporary tax are subject to interest at 4,50% p.a. on every completed month of delay, irrespective of when paid. In addition, late payments of temporary tax are also subject to a 5% fine (flat rate).

A final payment must be made on 1st of August of the following year of assessment (for tax year 2014 the final payment must be made by 1st of August 2015), so as to bring the total instalment payments to the level of the actual liability due (as per the actual tax liability determined).

Prior to completing your 2014 Temporary Tax Return, please bear in mind that taxable losses brought forward from previous years can no longer be carried forward indefinitely. As per the Income Tax Law, losses cannot be carried forward after the lapse of five years from the end of the tax year during which the loss occurred (i.e. for tax year 2014, only the losses from 2009 and onwards can be utilised).

We remain at your disposal for any queries you may have in relation to the above, or for any assistance requested in completing your 2014 Temporary Tax Return.

Contact us

Igoumenitsas 12,
CONNECTEDSKY HOUSE, P.C. 2027,
Strovolos, Nicosia, Cyprus

Tel:
70003517 in Cyprus
+357 22258800 from abroad

Fax:
+357 22258801

Email: info@csamir.com