Cyprus Limited Taxes and the Annual Tax Prepayment
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Cyprus Limited Taxes and the Annual Tax Prepayment

Annual Tax Prepayment

The tax authority of the Republic of Cyprus does not set the tax prepayment your company must pay for the year ahead. Instead, you and your company submit your own estimate. The estimate should be realistic.

To work it out, start with your expected turnover for the year. Then take away all your expected business costs. What is left is your expected profit before corporate income tax. The tax rate on that profit is 15 percent.

You pay the prepayment in two equal parts: one by 31 July, and one by 31 December.

Example Calculation

Estimated revenue for the current year (01.01 to 31.12): EUR 100,000
Estimated business expenses: EUR -60,000
Profit before corporate income tax: EUR 40,000
Corporate income tax 15% on EUR 40,000: EUR 6,000
1st instalment by 31 July (50%): EUR 3,000
2nd instalment by 31 December (50%): EUR 3,000

Good to Know

You can change your estimate during the year. We only need a short note by email. Please send it by 10 December at the latest.

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