2nd Provisional Tax Installment Cyprus 2024: Payment Deadline & Details

We would like to remind you that the payment deadline for the 2nd provisional tax installment Cyprus 2024 is the 31st of January 2025. The timely payment of provisional tax can be made through the tax portal of the government. Overdue payments can also be processed via the Tax Portal.

Tax provisions on temporary taxation

Every Cyprus company with taxable income is required to calculate the estimated profits of the same year and pay the corresponding tax in two equal installments on July 31 and December 31. If the expected taxable profit declared in the temporary tax return is less than 75% of the company’s final tax profit, then an additional tax of 10% is added to the final tax to be paid.

The provisional tax is payable in two equal installments, as follows:

 Late payments (made after the effective deadline) are subject to a 5% penalty as well as interest (at 5% per annum for 2024). An additional 5% penalty may be imposed if the tax remains unpaid, two months after the statutory deadlines.

Revised provisional tax calculation

Taxpayers can revise their 2nd provisional tax installment Cyprus 2024 calculation upwards or downwards until 31st December 2024.

SDC and GHS Contributions for the 2nd Semester of 2024

We would like to remind you that the Special Defence Contribution (SDC) and General Healthcare System (GHS) contributions for the 2nd semester of 2024 must be paid by 31st December 2024. These contributions apply to:

• Rental income not withheld by the tenant.
• Overseas bank interest income.
• Dividend income subject to SDC and GHS.

If payments are made via wire transfer, ensure that funds reach the Cypriot Tax Authorities’ bank account before the deadline to avoid interest and penalties.

SDC and GHS Contributions for Deemed Distribution of Profits (2022)

The deadline for paying SDC and GHS contributions on deemed distributable profits for the year 2022 is 31st January 2025.

Important Notes:

• Deemed distribution rules do not apply to profits that are directly or indirectly attributable to non-resident shareholders.
• Individual shareholders who are not tax residents or domiciled in Cyprus are also exempt from deemed distribution rules.

Please ensure all payments are submitted on time to remain compliant.

How can we help?

We are at your disposal to assist you with the calculation of the provisional tax and the administration of the provisional tax payments.