Provisional Tax for tax year 2025 – 2nd instalment
A taxpayer can pay the 2nd provisional tax instalment within one month from the payment deadline ie until 31/01/2026.
The payment can only be done via the online Tax Portal of the Tax Department (https://taxportal.mof.gov.cy) by selecting either the credit / debit card sign or the online banking which appears next to the Payment Reference Number.
Important notes:
- Non-payment on the due dates entails payment of interest at the rate of 5,50% per annum.
- Non-payment on the due dates will attract a monetary charge at the rate of 5%.
- If the estimated income declared in 2025 is less than 75% of the final chargeable income as determined by the Income Tax return submitted for the year 2025 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 2025, with any revised tax amounts be equally apportioned over the two instalments, thus attracting 5,50% p.a. on past due instalment.
- Overpaid tax is refunded together with interest of 5,50% per annum.
Under the Income Tax law, all Cyprus tax resident companies are taxed at the rate of 12.50% on taxable income.
| Provisional tax instalments | Statutory deadline | Effective deadline (no penalty / no interest) |
| 1st instalment | 31 July 2025 | 31 August 2025 |
| 2nd instalment | 31 December 2025 | 31 January 2026 |
Stock take and cash count
Stock take
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.
Cash count
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.
Deemed dividend distribution as at 31 December 2025
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 2026.
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.
The tax registration and obtaining a TIN is done online through the Tax For All portal of the Tax Department https://taxforall.mof.gov.cy/
Tax Diary – Till 31 December 2025
Payment of provisional tax – second and last instalment for the year 2025
Payment of second instalment of special contribution for defence for the last six months of the year (2025), 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 2026
Payment of defence and contributions to GHS withheld on rent payments for the last 6 months of the year 2025.
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
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 2025 will have to be submitted alongside with the audited financial statements of 2024).
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.
Maria Shiaka
Apserou Shiaka & Co Ltd
December 2025