June Direct Taxation Newsletter- Issue 05/2026

Deadline for Payment of Provisional Tax

In accordance with Article 24 of the Assessment and Collection of Taxes Law, all companies must notify the Commissioner of Taxation of their estimated taxable income for the year by 31 July 2026 and consequently pay the estimated tax in two equal instalments as follows:

You should note that:

- The payment of the 1st instalment can be made by 31 August 2026, without any interest and penalties.

- Non-payment of the 1st instalment on the due date attracts interest at the rate of 3.5% per annum, calculated on a monthly basis.

- If the estimated income declared in 2026 is less than 75% of the final taxable income, as determined by the Income Tax return submitted for the year 2026 and/or as per the taxable income as assessed by the Commissioner of Taxation, then any balance of tax is subject to an additional 10% charge.

- Revision of the original provisional tax declaration is possible until 31 December 2026, with any revised tax amounts be equally apportioned over the two instalments, thus attracting interest of 3.5% per annum on the part which relates to the 1st instalment.

- Under the the Income Tax law, all Cyprus tax resident companies are taxed at the rate of 15% on their taxable income.

- The balance of tax payable for the tax year 2026 is payable by 31 January 2028.

- Overpaid tax is refunded (subject to the conditions prescribed by law), together with interest at the applicable official interest rate. Interest begins to accrue four (4) months after the later of: (i) the due date for filing the tax return (or revised tax return), and (ii) the actual date of filing of the tax return (or revised tax return). 

It is strongly recommended that you give due consideration to the matter and we urge you to contact us in order to make all the necessary arrangements for the prompt payment of the relevant tax.

In case where, we do not receive your information by 16 July 2026, we will consider that the taxable income will be zero and therefore no declaration/payment will need to be effected.

For any further information and/or clarifications required, please do not hesitate to contact us.