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Provisional Tax for the tax year 2023

Obligation for provisional tax payment

According to the Cyprus Income Tax Law, Cyprus companies and individuals must apply a temporary tax calculation of their 2023 chargeable income for the provisional tax payment.

We would like to remind you about the obligation of the companies and individuals (who derive income other than from emoluments) to estimate their annual taxable income and settle in advance their resulting income tax payable for the tax year 2023 in two equal instalments on 31 July 2023 and 31 December 2023.

The payment of the 1st instalment can be made by 31 August 2023 at the latest, without any interest and penalties.

Provisional tax instalmentsStatutory deadlineEffective deadline (No interest/penalty)
1st instalment31 July 202331 August 2023
2nd instalment31 December 202331 January 2024

In case no taxable income is expected for the tax year 2023, then no provisional tax should be paid.

Revised provisional tax calculation

The provisional tax may be revised upwards or downwards at any time before 31 December 2023. 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 now.

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