Adapting to the New Era of Tax Compliance

The Cyprus Tax Department has announced significant changes regarding the submission of the (Employer) Withholding and Tax and Contributions Declaration (IR7) and the payment process for related taxes and contributions. Starting in the first half of 2025, these processes will transition to the TAX FOR ALL (TFA) system, aiming to streamline and modernize compliance.

What You Need to Know

Until the TFA system is fully operational for IR7 submissions, the following procedures will remain in effect:

• For submissions until the year 2023 (inclusive): Use the TAXISnet system.
• For monthly tax and contribution payments (2023–2025): Continue using the Tax Portal.

Once the TFA system is implemented for IR7 submissions, the new regulations will include:

1. Exclusivity to TFA: Both submission and payment of tax and contributions withholding will only be possible via the TFA system.
2. Mandatory Monthly Submissions: From 2025 onwards, all employers must submit monthly TF7 declarations.
3. Backdated Declarations: Employers will need to submit all monthly declarations for 2025, even if payments for those months were previously made through the Tax Portal.
4. Employee Tax Identification Number (TIN): Each IR7 declaration must include the TIN for every employee.

The Tax Department will issue detailed Information Guides and conduct Online Seminars to assist employers in understanding and adapting to these changes.

How Evidentrust Financial Services Will Support You

At Evidentrust Financial Services Ltd, we remain committed to ensuring that our clients navigate these changes smoothly and maintain full compliance with their tax obligations. Here’s how we can assist:

• Tailored Updates: We will provide detailed guidance as new information about the TFA system and its implementation becomes available.
• Compliance Services: Our team will handle the preparation and submission of your IR7 declarations in accordance with the updated requirements.
• Training and Support: For clients managing submissions in-house, we’ll offer workshops and consultations to help you familiarize yourself with the TFA system.

Be Prepared for 2025

To avoid disruptions, it’s essential to stay informed and ensure that your tax and payroll systems are prepared for the transition to the TFA system. Moreover, it is important for all employees to register with the tax department and obtain a Cyprus Tax Identification number. Contact us today to discuss how we can help streamline your processes and ensure your business is fully compliant with the upcoming changes.

At Evidentrust Financial Services Ltd, we make compliance stress-free so you can focus on growing your business.