Two dates, two equal instalments
Cyprus charges the tax on the current year in advance, before the profit is known. The basis is an estimate the taxpayer submits themselves.
For the 2026 tax year:
| Instalment | Due |
|---|---|
| First half | 31 July 2026 |
| Second half | 31 December 2026 |
The two instalments are equal. They do not follow the course of trade. Anyone who earns their money in the fourth quarter still pays half in July.
Affected are:
- companies tax resident in Cyprus that expect a profit
- self-employed persons with taxable business income
The 75 percent limit, and why it costs more than expected
This is the rule most people get caught on.
If the estimated taxable profit is below 75 % of the profit later assessed, a surcharge of 10 % applies.
The consequence is an incentive that runs against instinct: estimating cautiously is expensive. Anyone pitching low to protect cash flow runs straight into the surcharge. Anyone pitching high pays too much temporarily and gets the difference back.
31 December is the last opportunity
The estimate can be adjusted until 31 December, upwards as well as downwards.
That makes the second date two things at once: it is the due date of the second instalment and the last day on which the estimate can still be rescued.
In practice: in December you should know the profit accrued so far and hold it against your own July estimate. If the estimate is below 75 % of what is foreseeably coming out, correct it now. On 1 January that is no longer possible.
The 2026 trap: the new rate
Anyone carrying their estimate forward from the previous year may also be carrying forward the old tax rate.
Up to and including the 2025 tax year, corporate tax was 12.5 %. Since the 2026 tax year it has been 15 %. That is 20 % more tax on the same profit.
An estimate calculated at 12.5 % therefore automatically sits at 83 % of what 15 % would produce. That just clears the limit but leaves no room for a profit that turns out higher than expected. Two deviations together, and the surcharge is there. The details of the new rate are in the guide to corporate tax.
What we could not substantiate
- The level of late payment interest for 2026. That interest applies to amounts paid late is not in doubt. We did not check the rate set for 2026 against an official source for this article and therefore do not quote it.
- Whether the surcharge applies alongside late payment interest or instead of it. The sources treat the two separately without setting out their relationship.
- The treatment of companies formed mid-year. Whether and how the two dates shift when a company comes into existence during the year we could not establish conclusively.
If your case hangs on that, the question belongs with somebody who puts their name to the answer: Cyprus setup from one place.
Bookkeeping: estimating with figures
The 75 percent limit is only a problem if you do not know the running profit. Anyone who knows it is not estimating but calculating.
In Volk Accountant the current year’s profit runs along, and the tax estimate puts the 15 % on it, together with a suggested reserve. In July and December the question then becomes a lookup rather than a guess from feel.
Which other dates fall in the Cyprus year is in the overview of tax deadlines.