It is important that all Cyprus tax resident Companies that are expected to make a profit in 2017 submit their provisional tax return form, known as Form T.D 6 as soon as possible.
Based on the amended legislation, Assessment and Collection of Taxes Number 4 (1978) article 24, all Cyprus tax resident Companies are required to pay their provisional tax in two equal instalments. The first instalment is due to be paid by 31/7/17 and the second by 31/12/17.
Companies that fail to pay their provisional tax on time will be penalised with a 5 percent charge on the tax due and a 3.5 percent increase per year.
In cases where the 2017 provisional tax paid by a company is less than 75 percent of the yearly taxable profits, which have been calculated by audits, a 10 percent penalty will be imposed on the difference between the provisional tax and the actual tax.