Cyprus tax authority has reminded taxpayers the deadline for submitting a revised provisional tax calculation (if applicable) and making the second provisional tax payment for the 2024 tax year is 31 December 2024.
Taxpayers whose taxable income is beyond salaries, pensions, dividends, and interest, as well as companies with taxable income, should consider submitting a provisional tax calculation and payment.
Taxpayers can pay their second provisional tax installment by 28 February 2025 without incurring interest or penalties. Late provisional tax payments must be made online and incur 5% annual interest (calculated monthly) plus a 5% penalty. The Cyprus Tax Department may impose a 5% penalty if the tax remains unpaid two months after the deadline (from 1 March 2025 onwards).
If the provisional taxable income is revised downward, any remaining provisional tax can be paid by 31 January 2025 without incurring interest or penalties.
If provisional taxable income is revised upward, the additional amount for the first tax installment is due by 31 December 2024, with 5% annual interest on late payments. The second installment can be paid by 31 January 2025 without interest or penalties.
Under Circular 54, employees and pensioners who earn more from their salary than other sources and have paid at least 75% of their total income tax through employer withholding (Pay As You Earn) are exempt from the additional 10% tax.
