What is Corporate Income Tax (Cyprus)?
Corporate income tax is charged on the worldwide taxable profit of Cyprus tax-resident companies. The rate is 15% from 1 January 2026, up from 12.5% for tax years up to and including 2025.
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Current Rate (Calendar year, 1 January to 31 December)
15% from 1 January 2026. 12.5% for tax years up to and including 2025
Example
A Cypriot Ltd with €200,000 of taxable profit for 2026 pays €30,000 of corporate income tax at 15%. The same profit for 2025 would have been taxed at 12.5%.
How Corporate Income Tax (Cyprus) works in Cyprus
The 2026 tax reform, voted on 22 December 2025, raised the headline rate from 12.5% to 15%. Most older sources, including professional-firm summaries, still show 12.5%, so treat any pre-2026 figure with care. Use 12.5% only for periods ending on or before 31 December 2025.
The 2025 return is still due on 31 March 2027, and it is taxed at 12.5%. Both rates therefore matter during 2026 and 2027.
Tax losses can be carried forward for 7 years from 2026, extended from 5 years. Finn estimates the tax at 15% on adjusted profit and flags the provisional tax deadlines.
Related terms
The TD4 is the annual corporate income tax return for Cypriot companies. It is due 15 months after the tax year end and filed electronically.
Provisional tax is paid by companies and self-employed persons on estimated current-year profit, in two equal instalments on 31 July and 31 December.
Special Defence Contribution is a tax on certain passive income received by Cyprus tax-resident and domiciled individuals. From 1 January 2026 the rate on actual dividends is 5%, down from 17%.
Deemed dividend distribution was a rule treating a company as distributing 70% of its accounting profits two years after the year end. It is abolished for profits earned from 1 January 2026.
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