Temporary Tax Assessment – 2nd instalment
In accordance with the Assessment and Collection of Taxes Law, all companies / self-employed individuals are required to notify the Commissioner of Taxation of their estimated chargeable income, and consequently their resulting temporary tax for the year 2024.
Based on the temporary tax computation, tax is payable in two equal instalments as follows:
| Provisional tax instalments | Statutory deadline | Effective deadline (no penalty / no interest) |
| 1st instalment | 31 July 2024 | 31 August 2024 |
| 2nd instalment | 31 December 2024 | 31 January 2025 |
The aborementioned payments can only be done via the online Tax Portal of the Tax Department (https://taxportal.mof.gov.cy).
Important notes:
- Non-payment on the due dates entails payment of interest at the rate of 5% per annum.
- Non-payment on the due dates will attract a monetary charge at the rate of 5%.
- If the estimated income declared in 2024 is less than 75% of the final chargeable income as determined by the Income Tax return submitted for the year 2024 and as per the chargeable income as assessed by the Commissioner of Taxation, then any balance of tax which is payable is subject to an additional 10% charge.
- Revision of the original declaration is possible until 31 December 2024, with any revised tax amounts be equally apportioned over the two instalments, thus attracting 5% p.a. on past due instalment.
- Overpaid tax is refunded together with interest of 5% per annum.
Under the Income Tax law, all Cyprus tax resident companies are taxed at the rate of 12.50% on taxable income.
Confirmation of Beneficial ownership details in the Beneficial Ownership Register System
The Department of Registrar of Companies and Intellectual Property (DRCIP) informs that all companies incorporated or registered under the Companies Law, Cap. 113, all European Public Limited Liability Companies (SE), and all Partnerships (hereinafter referred to as “Organisations”) or their respective officers/partners are required to confirm electronically the information of their ultimate beneficial owners (UBOs), or their senior management, or perform due diligence (as applicable in each case) into the Register of Ultimate Beneficial Owners (UBO Register) system from 1 October 2024 to 31 December 2024.
In case where, the information is not confirmed by the 31 December 2024, as required in the UBO Register, regardless of any criminal liability or prosecution of any individual, the organisation and each of its officers/partners will be subject to financial penalties
In the “Frequently Asked Questions – Ultimate Beneficial Owners” section, under “Confirmation of Information in the UBO Register,” you can find the steps to complete the confirmation process in the UBO Register system at FAQs
Stock take and cash count
According to the provisions of the Assessment and Collection of Taxes Law, as well as the Value Added Tax (VAT) Legislation, all businesses (including companies and self-employed individuals) that maintain stocks at the end of each fiscal year, are required to perform a stock take.
Stock take should include quantitative measurement and valuation of trading stocks units (including raw materials, finished products and work in progress).
Failure to comply with the law requirements, may lead to the imposition of penalties and/or could result to the rejection of the Tax Declaration by the Tax Commissioner.
It is also very important to know on the last day of the accounting year (31/12) the cash amount that includes also postdated cheques.
Annual returns
Every Cyprus company that has share capital is required to submit to the Registrar of Companies an Annual Return in accordance with Company Law Ch.113
The Annual Returns (HE32) are always accompanied by the audited financial statements of the previous year (e.g. the Annual Return (HE32) for the year 2024 will have to be submitted alongside with the audited financial statements of 2023).
In the case of default, the following administrative fines will be charged:
For every delayed submission an initial fixed penalty of €50 (fifty euros) will be charged plus an additional charge of €1 (one euro) for every day the failure to comply continues up to a maximum amount of €150.
Deemed dividend distribution as at 31 December 2024
Cyprus resident companies not distributing a dividend within two years from the end of the tax year, in which the profits were generated, are liable to 17% special contribution for defence tax on 70% of their accounting profits after the deduction of the tax amount.
The National Health Contribution (GHS) rates should also be considered (2.65%).
The payment of SDC and GHS should be paid by 31 January 2025.
TD 7 and Valid TINs
Following the announcement of the Tax Department, the TD7 declaration for 2024 will require valid tax identification number for all employees.
Tax Diary – Till 31 December 2024
Payment of provisional tax – second and last instalment for the year 2024
Payment of second instalment of special contribution for defence for the last six months of the year (2024), on the income from rents, dividends and interest received from sources outside Cyprus.
Payment of premium tax for life insurance companies -third and last instalment for the year
Tax Diary – Till 31 January 2025
Payment of defence and contributions to GHS withheld on rent payments for the last 6 months of the year 2024.
Payment of tax deducted from employees salary (PAYE) in the preceding month
Payment of Defence and General Health contributions withheld on dividends and interest
Payment of tax withheld during the previous month on payments to non-Cyprus tax residents
Maria Shiaka
Apserou Shiaka & Co Ltd
December 2024