Taxpayers must submit a temporary tax return (form T.D.6 for legal persons and form T.D.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.
Taxpayers must submit a temporary tax return (form T.D.6 for legal persons and form T.D.5 for self-employed individuals) 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 2017 is payable in two equal installments, on 31st of July 2017 and 31st of December 2017.
Estimated taxable income can be revised (upwards/downwards) any time prior to 31st of December of the current tax year.
In the event where it appears that there is no taxable income, it is 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 3.5% p.a. In addition, there is a 5% fine for late payments of temporary tax.
The temporary tax form can also be submitted electronically via https://www.JCCSmart.com by paying the amounts under code 0200 for 2017.
The final payment of the 2017 tax must be made via self-assessment on 1st of August of the year following the year of assessment (i.e. for the tax year 2017 payment must be made by 1st August 2018).
Prior to completing your 2017 Temporary Tax Return, please bear in mind that taxable losses brought forward from previous years 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 2017, only the losses from 2012 and onwards can be utilised).