Provisional Tax Payment for 2020 Corporation Tax
Dear Friends / Clients
Like prior years, you are required to calculate the 2020 Corporation Tax of your Company and to proceed with the prepayment of the 2020 Corporation Tax in two instalments as follows:
• by the 31st July 2020, and
• by the 31st December 2020
If you do not prepay at least 75% of the Corporation Tax in these two instalments then 10% Penalty will be added to the Year End Tax Liability. Therefore, it is more tax efficient to prepay this tax and to avoid the penalty.
If an over payment takes place then this over payment can be carried against the 2020 Corporation Tax or other Applicable Taxes affecting your Company (i.e. it can be netted off). A tax refund is also an option following the examination of the computation by the Tax Commissioner, though not recommended.
New Companies and / or Companies with unpredictable profitability should not proceed with the prepayment of the 2020 Corporation Tax Unless Cash Flow permits or / and their profitability for 2020 is more than €25,000 as the cost of proceeding with the prepayment of the Corporation Tax is higher than the saving.
Making the 1st Provisional Tax Payment
Please ensure that you contact us the soonest possible to calculate the appropriate tax level and the first 2020 tax prepayment of your Company. Alternatively ignore this notification.
We can make the Payment for You
Ensure you contact us before the 20th of July in order to discuss the appropriate level of tax suitable and to transfer the prepayment of tax at our account as shown below:
Our fees for this service and for both provisional tax payments will be €100 + VAT
Account Name: Optigma Ltd
Bank: Astrobank Ltd
IBAN: CY76 0080 0201 0000 0000 0209 9607