Cyprus Payroll Tax Updates 2025+: Monthly TD7 (ΤΦ7 / IR7) PAYE Declarations in Tax For All (TFA)

From tax year 2025 onwards, Cyprus employers must submit monthly withholding tax (PAYE) declarations through the Tax For All (TFA) system, in addition to the standard annual employer return. This change affects most Cyprus companies, including those with low or nil withholdings, and introduces new reporting deadlines and payroll compliance routines.

Cyprus payroll compliance has changed significantly following the Tax Department’s decision to move employment-related tax submissions and payments into the Tax For All (TFA) system. The most important update for employers is clear: monthly employer declarations are required from 2025 onwards, alongside the annual employer return.

This update impacts day-to-day payroll operations, reporting schedules, and employer responsibilities – especially for businesses managing directors’ remuneration, mixed employment setups, or smaller teams where payroll compliance is handled internally.

What is Tax For All (TFA) and why does it matter for payroll in Cyprus?

Tax For All (TFA) is the Cyprus Tax Department’s digital platform designed to centralise tax interaction and modernise processes – covering not only submissions, but also the way tax liabilities are created and settled in the system.

For payroll tax matters, the move to TFA is more than a “new portal”. It reflects a broader shift toward:

• more frequent reporting (monthly instead of primarily annual),
• stronger data accuracy requirements, and
• a standardised employer compliance cycle across the year.

 

For employers, this means payroll reporting becomes a consistent monthly obligation that must be aligned with internal payroll calendars and HR processes.

What changed in Cyprus payroll tax reporting from 2025?

Monthly TD7 (ΤΦ7 / IR7) declarations became a requirement (not optional)

Historically, many employers focused on annual employer reporting as the main compliance milestone. Under the current approach, monthly declarations are now part of the required payroll cycle from tax year 2025 onwards.

This change affects the majority of Cyprus employers – whether they run payroll for one employee or fifty.

Why the “monthly” model matters

Monthly reporting increases compliance visibility and reduces year-end surprises, but it also means employers must treat payroll tax submissions as an operational discipline rather than a year-end task.

Important: Each employee must obtain Cyprus Tax Identification Number (TIC / TIN) as it is a mandatory requirement for submitting the Tax Returns.

Who is affected by the monthly employer declaration requirement?

The monthly TD7 (ΤΦ7 / IR7) requirement applies broadly across Cyprus employers, including:

• companies with standard employee payroll and PAYE deductions,
• businesses with employer/employee contribution reporting,
• companies where payroll includes directors and company officials, and
• employers with low withholding months or variable payroll activity.

 

In other words: even if the business is small, the compliance expectation is now aligned with a regular monthly reporting model.

Which filing scenario applies to your company?

Cyprus guidance distinguishes two common scenarios depending on whether your company has monthly withholdings payable.

Scenario A: Annual return + 12 monthly TD7 (ΤΦ7 / IR7) declarations

This scenario applies where employers withhold and remit on a monthly basis:

• Income Tax (PAYE), and/or
• employee contribution elements, and/or
• employer contribution elements.

 

In this case, the structure becomes straightforward:

• 12 monthly returns (one per month), plus
• 1 annual employer return.

 

Scenario B: Annual return + at least one monthly return (no PAYE)

This scenario is especially important because it addresses a common misconception:

“If we have no PAYE or contributions payable, we don’t need to file.”

In reality, employers may still be required to submit at least one monthly return (commonly a December statement reflecting annual amounts), alongside the annual employer return – particularly where payroll includes company officials such as Directors or Secretaries, or where the employer must still confirm annual totals through reporting.

This is frequently relevant for:

• director-only structures,
• businesses with minimal payroll activity, or
• cases where withholding obligations are nil during the year.

Monthly TD7 (ΤΦ7 / IR7) declarations key deadlines: what employers should know about the 2025 timeline

While the obligation begins in tax year 2025, it is important to note how deadlines can extend into the following year in practical terms.

In payroll reporting cycles, December reporting typically carries a submission deadline in January of the following year (meaning the December 2025 filing can fall in January 2026). This is one of the reasons some employers mistakenly assume the update “starts in 2026” – but the requirement itself is anchored to 2025 onwards.

For payroll teams, the implication is simple: do not leave reporting for year-end catch-up. Monthly compliance should be treated as part of the standard process.

Important: From 2026 and onwards, the tax for the current month is payable until the end of the following month.

Monthly TD7 (ΤΦ7 / IR7) declarations in Cyprus. What these changes mean for employers in practice?

1) More visibility, but also more responsibility

Monthly filings can create clearer compliance reporting and smoother year-end closure. However, they also require employers to ensure that:

• payroll data is maintained consistently,
• payroll totals are reconciled regularly, and
• reporting is not delayed by internal approvals or missing information.

 

2) Increased focus on payroll record accuracy

Under a monthly reporting model, errors that might previously have been resolved at year-end now become visible earlier and more frequently.

For employers, this increases the value of:

• properly structured payroll records,
• consistent employee classification, and
• documented payroll processes.

 

3) Higher compliance risk for “small payroll” employers

Smaller organisations can be disproportionately affected because payroll is often managed by non-specialists or shared across HR/accounting roles.

If monthly filings are missed – even unintentionally – it can create avoidable compliance pressure later in the year as well as penalties.

Need help with monthly payroll compliance in Cyprus? Speak to IBCCS TAX

For many employers, the move to monthly declarations under Tax For All (TFA) is not just a technical change – it reshapes the payroll compliance calendar for 2025 and beyond.

If you would like support with monthly TD7 (ΤΦ7 / IR7) submissions, payroll reporting coordination, or ongoing employer compliance in Cyprus, IBCCS TAX can assist with:

• outsourced payroll processing and monthly reporting routines in Cyprus,
• preparation and submission of employer declarations through TFA,
• annual employer return coordination,
• director/officer payroll handling and reporting alignment in Cyprus.

 

Contact our team to discuss your payroll structure and ensure your monthly reporting is aligned with the latest Cyprus requirements.

FAQ: Cyprus monthly TD7 (ΤΦ7 / IR7) employer declarations via TFA (2025+)

1) Is monthly TD7 (ΤΦ7 / IR7) mandatory in Cyprus from 2025 or from 2026?

Yes – monthly employer TD7 / TF7 declarations apply from tax year 2025 onwards. Some deadlines may fall in early 2026 (e.g., December reporting), but the obligation itself starts in 2025.

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2) What is the monthly employer declaration in Tax For All (TFA)?

The monthly employer declaration TD7 (ΤΦ7 / IR7) is the payroll withholding tax return submitted through Tax For All (TFA), covering PAYE Income Tax and applicable benefits and other amounts that fall outside the scope of Social Insurance Services. The submission generates the liability in the system for settlement.

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3) Do employers still need to file an annual return in Cyprus payroll?

Yes. Monthly TD7 (ΤΦ7 / IR7) filings do not replace the annual obligation. Employers must submit monthly declarations (based on their scenario) and an annual employer return.

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4) What if there is no PAYE or GHS payable for employees or directors?

Even if there is no withholding payable, employers may still need to file at least one monthly return (commonly December showing annual totals) plus the annual return, depending on their case.

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5) Do Directors or company officials need to be included in monthly TFA declarations?

In many cases, yes. Employer clarifications refer to directors or other officials as part of payroll reporting scenarios, including situations with no withholding payable.

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6) Why must the monthly return be submitted before payment in TFA?

TFA operates on a “submit first” logic: the monthly filing creates the payable liability in the platform. Employers can then settle the correct amount through the system.

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7) What information must payroll teams prepare for monthly TD7 (ΤΦ7 / IR7) filing?

For monthly submissions, employers should prepare accurate payroll calculations and ensure employee records are complete, including a valid Tax Identification Number (TIC / TIN) per employee. For a quick estimate of employee income tax and net salary, you may also use Personal Income Tax Calculator Cyprus 2026.

If you have any questions regarding payroll calculations or monthly compliance, please feel free to contact our team.

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8) What are the deadlines for monthly TD7 (ΤΦ7 / IR7) submissions for 2025 and onwards?

Deadlines may differ depending on the month, with December filings often extending into January of the following year. Employers should align payroll calendars to avoid last-minute compliance risks.

Monthly submissions for 2025 must be completed until 31 January 2026.

From January 2026 onwards, the return for the current month must be submitted and paid until the end of the following month.