Provisional Tax Payment for Tax Year 2025
Under the Assessment and Collection of Taxes Law in Cyprus, companies anticipating taxable income for the 2025 tax year are required to submit their provisional tax declaration to the Tax Department by 31 July 2025. Companies that do not expect to generate taxable income for the year are exempt from this requirement. The corporate income tax in Cyprus is levied at a rate of 12.5% on the estimated taxable profits for the current year.
Obligation for provisional tax payment
We would like to remind you of the obligation of companies and individuals (who derive income other than from emoluments) to estimate their annual taxable income and settle in advance the resulting income tax payable for the tax year 2025 in two equal instalments, on 31 July 2025 and 31 December 2025.
| Provisional tax instalments | Statutory deadline | Effective deadline (No interest/penalty) |
|---|---|---|
| 1st instalment | 31 July 2025 | 31 August 2025 |
| 2nd instalment | 31 December 2025 | 31 January 2026 |
In case no taxable income is expected for the tax year 2025, then no provisional tax should be paid.
Revised provisional tax calculation
The provisional tax may be revised upwards or downwards any time before 31 December 2025. In case of an upward revision, interest is payable on the difference between the revised amount payable and the amount initially declared and paid.
10% additional tax
A 10% additional tax is imposed on the difference between the final tax due and the provisional tax paid, in case the taxable income declared is less than 75% of the final taxable income for the year.
How can we assist you?
Our Tax Team can assist you with the calculation of the estimated annual taxable income and the administration of the provisional tax payments. Contact us here.
