The North Cyprus Council of Ministers has introduced a one-off early-payment discount for 2025 corporate and personal income tax through Decree-Law No. 48/2026, published in TRNC Official Gazette No. 79 on 24 April 2026. Taxpayers who pay the full 2025 liability before the first installment due date receive an additional 5% discount on top of any existing entitlement. The relief is limited to 2025 and is administered by the Ministry of Finance. With the corporate tax first installment due date set at 30 April 2026, taxpayers wishing to benefit have only a few business days to decide.
How the Discount Layers onto Existing Relief
Decree-Law 48/2026 has been designed to add to — not replace — the existing compliance-based discount regime. Under Corporate Tax Law No. 41/1976, Article 40(4), and Income Tax Law No. 24/1982, Articles 52(4) and 52(5), taxpayers with three years of timely filings and payments already benefit from a 5% discount. The new decree preserves this entitlement and overlays an additional 5% benefit, conditional on early settlement of the full 2025 liability. The policy intent is to accelerate state cash collection while rewarding voluntary compliance.
Discount Mechanism — Two Taxpayer Groups
| Taxpayer Profile | Existing Discount | Decree-Law 48/2026 Add-On | Total Discount |
|---|---|---|---|
| Three-year record of timely filings and payments (under CT Law 41/1976 Article 40(4) or IT Law 24/1982 Article 52(4)/(5)) | 5% | +5% | 10% |
| Taxpayers without an existing entitlement | 0 | +5% | 5% |
Conditions for Eligibility
Both taxpayer groups must satisfy two conditions: (1) the 2025 return must be filed within the statutory deadline; (2) the full assessed tax must be paid before the first installment due date. Partial early payments do not qualify. For corporate taxpayers the 2025 first installment is 30 April 2026; for individual income tax payers due dates typically fall in May 2026. The relief is limited to 2025.
Worked Example — Corporate Tax Base of 1,000,000 TL
The two-scenario calculation below illustrates Decree-Law 48/2026 for a company with a 2025 corporate tax base of 1,000,000 TL taxed at the 15% corporate tax rate. The first scenario covers a company qualifying under CT 40(4) for the existing 5% compliance discount through three years of clean filings and timely payments, while the second covers a company without that entitlement. The additional 5% is computed on the gross tax base, consistent with the literal reading of "5% on the tax payable" in the decree text; the final implementation method awaits a Ministry of Finance circular that has not yet been issued. Companies with the existing entitlement see a combined saving of 10% on gross tax, while companies without it obtain 5% for the first time.
| Calculation Step | Existing 5% Entitlement (CT 40(4)) | No Existing Entitlement |
|---|---|---|
| Tax Base | 1,000,000 TL | 1,000,000 TL |
| Corporate Tax Rate | 15% | 15% |
| Gross Tax | 150,000 TL | 150,000 TL |
| Existing 5% Discount (CT 40(4)) | −7,500 TL | 0 TL |
| Decree-Law 48/2026 Additional 5% | −7,500 TL | −7,500 TL |
| Tax Payable | 135,000 TL | 142,500 TL |
| Total Saving | 15,000 TL (10% combined) | 7,500 TL (5%) |
Who Should Act This Week?
For limited companies and other corporate taxpayers: paying the full 2025 corporate tax by 30 April 2026 is the binding condition; companies should weigh the discount against short-term financing costs and the working-capital impact of accelerating payment by several months. For self-employed professionals subject to declaration (lawyers, certified accountants, doctors, engineers): the same 5% add-on applies once the 2025 personal assessment is finalised, and taxpayers qualifying under IT 52(4)/(5) for the existing entitlement can secure a combined 10% discount on the income tax otherwise payable. For commercial and agricultural sole traders: the same early-payment condition applies, with a 5% discount available where the assessed amount is settled in full before the first installment due date that falls in the relevant filing period.
