TD7 Submission via TAX FOR ALL (TFA) – Employer Obligations 2025

According to the latest announcements by the Cyprus Tax Department:

• From now onwards, all payments of withheld taxes and contributions (PAYE, GHS, Special Defence Contribution) must be made exclusively through the new TAX FOR ALL (TFA) system and no longer via the Tax Portal.

• Starting with the tax year 2025, the monthly submission of the TD7 Declaration is mandatory for all employers, beginning with January 2025, even for months where payments were previously made through the Tax Portal.

• Compliance with these new requirements is mandatory for all employers.

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What changes from 2025

The introduction of the TAX FOR ALL (TFA) system brings significant changes:

• The Tax Portal will no longer accept PAYE, GHS, and Defence Contribution submissions.

• Employers are obliged to submit the TD7 Declaration every month starting from January 2025.

• All payments and declarations are now processed only through the TFA system.

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Mandatory information per employee

For each employee, the following details must be submitted monthly:

• Tax Identification Number (TIN)

• Full name

• Date of hiring and termination (if applicable)

• Monthly remuneration

• Pensions or other additional benefits

• Withheld tax (PAYE)

• Special Defence Contribution (if withheld)

• GHS (if withheld)

• Social insurance contributions

• Contributions to pension or other funds

• Tips/bonuses

• Financial benefits of directors, shareholders, or related parties

• Other relevant information

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Preliminary interpretation by Rightax

It has not yet been clarified whether an administrative fine will be imposed for the non-submission of a zero TD7 declaration (e.g., months without any withholding).

Our preliminary assessment:

• The 1% monthly surcharge plus interest applies only to unpaid taxes.

• If there is no withholding, there is no liability, therefore no penalty or interest.

• However, there is a compliance risk that the Tax Department may later require penalties even for missing zero declarations.

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Our approach for clients

To safeguard compliance and, at the same time, reduce unnecessary costs, Rightax recommends:

• Submit TD7 only for months and employees with actual withholding.

• Using a consolidated approach for employees who remain throughout the year without changes (hire/termination).

This ensures that:

• The frequency of submissions is reduced,

• Compliance is maintained,

• Flexibility is preserved to adapt to future instructions from the Tax Department.

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Frequently Asked Questions (FAQ)

What is the TF7 Declaration?
It is the monthly employer declaration for PAYE, GHS, and other contributions, submitted exclusively through TFA.

Do I need to submit a declaration if there is no withholding?
The Tax Department guidelines indicate that all monthly declarations must be submitted, but it has not been clarified if penalties will apply to zero declarations.

Does the 1% surcharge and interest apply?
Yes, but only in cases of unpaid withheld taxes. Not for zero declarations.

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Conclusion

This analysis is based on preliminary interpretation and the current guidelines. If changes are introduced by the Tax Department, we will update our clients immediately.

For details regarding the related cost and our specific approach to handling this matter, please contact our team.

Our goal is not to incur additional fees, but to cover the cost of these time-consuming procedures, ensuring full compliance with the law and avoiding future penalties.

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Contact Us

For more information on TD7 submissions and how we can assist your company, please contact us:

Reach out for expert help with tax, accounting, audit, or company setup in Cyprus.

+357 99 108 510

[email protected]