As per the Assessment and Collection of Taxes Law, Cyprus tax resident companies and self-employed individuals are required to calculate their expected taxable income for the current year and pay provisional tax at a rate of 12.5%. This payment is to be made in two installments, due on 31st July 2024 and 31st December 2024.
Failure to pay the tax by the end of the month following the installment due date (i.e., 31st August 2024 and 31st January 2025) will result in interest charges at the prevailing rate, which is 5% as of the date of this article. Additionally, a 5% monetary penalty will be imposed on the outstanding tax amount in the event of non-payment.
The estimate of the taxable income may be revised at any time before the 31st December 2024. If the estimate is revised upwards, interest is payable on the difference between the revised amount payable for each installment due and the amount initially declared and paid.
If the estimated taxable income is less than 75% of the actual taxable income as declared on the submitted tax return of the year, then an additional 10% on the difference between the temporary tax and actual tax is imposed.
Any difference between the actual tax payable and the provisional tax paid for the year 2024 is payable by 1 August 2025 via the self-tax assessment method.
Provisional tax payments are to be made exclusively via the tax portal.
If you require our assistance you may call us on +357 22 811 900 or send us an email at info@elsavco.com
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