Upcoming Tax Deadline and Key Notes for Compliance
As the deadline for the first instalment of the 2025 tax payment approaches on31st July 2025, we want to remind you of the essential steps to ensure compliance with Cyprus tax laws and avoid penalties.
Key Notes for Compliance:
- Tax Filing Deadline: Companies and self-employed must submit their expected taxable income to the Cyprus Tax Department by July 31, 2025.
- Tax Rate: Cyprus tax rate for companies is 12.5% on taxable profit.
- Provisional Tax Obligation: The provisional tax is calculated by applying the relevant tax rates (depending on whether the taxpayer is an individual or a company) on the expected taxable profit for the year, after taking into account any overseas tax credits. It is payable in two equal instalments, as follows: 1st instalment until 31 July 2025 & 2nd installment until 31 December 2025. The timely payment of provisional tax can be made by firstly creating the provisional tax obligation through the Tax Portal of the Tax Department (TD) and then selecting one of the below payment methods:· Credit/debit card which automatically transfers you to jccsmart gateway, or · online banking of a local bank.
- Adjustment Period: Any difference between provisional and actual tax must be paid by August 1, 2026. A 10% penalty applies if the declared income is under 75% of the final amount.
- Revision Deadline: Tax declarations can be revised until December 31, 2025.
- Penalties for Late Payment: Late payments incur 5.5% interest and a 5% penalty on the outstanding amount.
We strongly recommend that you consult with us to ensure that all required steps are taken in a timely manner. Aqualis is here to provide full support and guidance throughout this process.