The Cyprus Tax Department has announced that, within the first half of 2025, the submission of the TD7 (Employer’s Tax & Contribution Withholding Return) and corresponding tax and contribution payments will be fully integrated into the Tax For All (TFA) system.

The transition aims to streamline tax compliance, enhance digitalisation, and ensure efficiency in employer tax submissions.

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Current TD7 Submission Process Until 2025

Until the full implementation of the TFA system, the following submission processes will remain in place:

✔ TD7 Declarations (Up to & Including 2023): Employers must continue submitting TD7 declarations for 2023 and prior years via the TAXISnet system.
✔ Monthly Withholding Tax & Contribution Payments (2023-2025): Employers will continue making tax and contribution payments via the Tax Portal for the years 2023, 2024, and 2025.

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New TD7 Submission Process Under the TFA System (2025 Onwards)

Once the TFA system is operational, the following changes will take effect:

1️⃣ TD7 Declaration Submission & Payments Will Be Exclusive to the TFA System – Employers must submit all TD7 returns and make payments solely through the TFA system.

2️⃣ Mandatory Monthly TD7 Declarations for 2025 & Beyond – Employers will be required to submit monthly TD7 declarations for 2025 and future years, rather than annual filings.

3️⃣ All 2025 Monthly Returns Must Be Submitted via TFA – Employers must ensure that all TD7 declarations from January 2025 onwards are submitted via the TFA system, including those where payments were previously made via the Tax Portal.

4️⃣ Mandatory Use of Tax Identification Code (TIC) for Employees – Employers must include the Tax Identification Code (TIC) for each employee when submitting TD7 declarations.

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Guidance & Implementation Support

To assist businesses with the transition to the TFA system, the Tax Department will:

📌 Issue detailed guidance documents on the TD7 submission process.
📌 Organise webinars and training sessions to ensure compliance with the new system.
📌 Provide technical support for employers navigating the TFA system.

A formal notification will be issued announcing the exact date when the TFA system will go live for TD7 submissions and payments.

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Action Steps for Employers

🔹 Stay Informed: Regularly check for updates from the Tax Department regarding the implementation timeline.
🔹 Prepare for Transition: Ensure that internal accounting and payroll teams understand the new TD7 submission and payment procedures.
🔹 Verify Employee Data: Employers should confirm that all employees have valid Tax Identification Codes (TICs) to prevent delays in TD7 submissions.
🔹 Attend Training Webinars: Take advantage of the training resources and webinars offered by the Tax Department.

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Final Thoughts

The shift to the TFA system marks a significant step in the digital transformation of tax administration in Cyprus. Employers are encouraged to familiarise themselves with the new system, update internal processes accordingly, and stay up to date with announcements from the Tax Department.