Provisional Tax – Deadlines and Penalties

Payment of temporary tax for the tax year 2023 and final tax for the tax year 2022

As per the Assessment and Collection of Taxes Law, every company or individual (who derives income other than from emoluments) must pay by the 31st of July 2023 an estimate of the taxable profit for (corporate) income tax purposes for the tax year 2023.

The temporary tax on such income is payable in two equal installments as follows:

– 31 July 2023;

– 31 December 2023.

If the tax is not paid before the end of the month following the month the installment is due (i.e. 31 August 2023 and 31 January 2024, respectively), interest is payable at the rate in force which is currently 2,25% per annum. Interest is calculated based on completed months of delay.

There is also a 5% monetary charge if the tax is not paid by the end of the following month to which it relates (i.e. 31 August 2023 and 31 January 2024 respectively for each installment).

The estimate of chargeable income may be revised (upwards or downwards) at any time before 31 December 2023.

If the estimated chargeable income (as finally revised) is less than 75% of the actual chargeable income as this will be declared on the submitted income tax return for the year, then there will be an additional tax of 10% on the difference between actual tax payable and the temporary tax paid.

Any difference between the actual tax payable and the temporary tax paid for the year 2023 is payable by the 1st of August 2024.

Categories

Calendar

June 2024
M T W T F S S
 12
3456789
10111213141516
17181920212223
24252627282930