Provisional Tax 2026

As per the Assessment and Collection of Taxes Law, Cyprus tax resident companies and self-employed individuals are required to estimate their expected taxable income for the current year and pay provisional (temporary) tax on that estimate. For companies, the tax is calculated using the corporate income tax rate, which increased to 15% with effect from 1 January 2026; self-employed individuals apply the personal income tax rates.

The provisional tax is paid in two equal instalments, due on 31 July 2026 and 31 December 2026.

Failure to pay each instalment by the end of the month following its due date (i.e. 31 August 2026 and 31 January 2027) results in interest at the prevailing rate, currently 3.5% per annum for 2026, together with a 5% monetary penalty on the tax that remains unpaid.

The estimate of taxable income may be revised at any time up to 31 December 2026. If it is revised upwards, interest is payable on the difference between the revised amount due for each instalment and the amount originally declared and paid.

If the estimated taxable income is less than 75% of the actual taxable income finally declared on the tax return for the year, an additional 10% charge is imposed on the difference between the tax due on the actual income and the provisional tax paid.

Any balance between the actual tax payable and the provisional tax paid for 2026 is payable by 31 January 2028

under the self-assessment method.

Provisional tax payments must be made exclusively through the Tax Portal.

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