31st  December 2013 is the last day to submit a revised or preliminary (revised) temporary tax return for 2013.

Those who have submitted and paid the first installment for 2013 must proceed to arrange payment for the second installment by the year end. 

The tax office gives the opportunity to those who have not submitted a temporary tax return for 2013 to proceed to do so and arrange the payment of

both installments (with small interest penalty on first installment) by 31st December 2013. 

Some additional information about the Temporary Tax system can be found below:

Temporary tax installments have been amended from 3 to 2 installments in 2013.

As per the Director of Inland Revenue and revised tax law for 2013:

•  Taxpayers must submit a temporary tax return (IR6 form) prior to 31st of July each year based on the estimated current year’s taxable profit.
•  Temporary tax payments must be made on the estimated current year taxable profit in two equal installments, on 31st of July and 31st of December.

 IMPORTANT NOTES

1. 1.       OBLIGATION TO SUBMIT ESTIMATION OF CHARGEABLE INCOME

According to article 24 of the Assessment and Collection of Taxes Law No.4 of 1978, as amended, it is your duty to submit a

temporary estimate of your chargeable income and the resulting tax for the year before the 31st of July of the current year. If,

from your computation, you have neither TAXABLE INCOME nor any TEMPORARY TAX DUE, YOU MUST NOT SUBMIT THIS

FORM AND THE DEPARTMENT WILL NOT TAKE RECEIPT OF IT.

1. 2.        PENALTIES FOR NON SUBMISSION OR LATE SUBMISSION

In accordance with article 50A(e) of the Assessment and Collection of Taxes Law No.4 of 1978, as amended, “Persons who pay their tax after

the dates stipulated in the law, are subject to a 5% fine.

1. 3.        EFFECTS OF LOW ESTIMATION OF CHARGEABLE INCOME AND OF OVERPAYMENT

Section 26 of the Assessment and Collection of Taxes Law No.4 of 1978, as amended, stipulates:

(a) the imposition of a surcharge amounting to one-tenth of the difference between the tax as finally determined and the

temporary tax assessed where the temporary chargeable income assessed is less than three-fourths of the chargeable

income as finally determined.

(b) The refund of any over payment of temporary tax together with interest, computed in accordance with the applicable

public interest rate, per annum based on the completed months from the 1st January of the year following the

assessment year for which the provisional tax is concerned.

1. 4.        REVISED COMPUTATION

Revised computations can only be submitted at the Inland Revenue Collection Offices by the 31st December of the tax year. If a

revised computation is submitted, the amount of tax (line 5) must be divided into equal installments and interest is chargeable

on the difference of each installment from their respective due date.

For those who would like to pay temporary tax, we are available to help estimation and payment.