Cyprus PAYE Annual Return 2025: Deadline Extended to 30 November 2026, Penalties up to EUR 500
By decision of the Tax Commissioner dated 16 September 2026, the deadline for submitting the Annual Declaration of Withholding Income Tax and Contributions (PAYE) for tax year 2025 has been extended to 30 November 2026. The previous deadline was 30 September 2026. Declarations submitted after the new date are treated as late and carry a penalty of EUR 250 for a legal entity, EUR 500 where the company's turnover or assets exceed EUR 1,000,000, and EUR 150 for an individual.
The extension gives employers two additional months, but it cancels no other obligation. Monthly TD7 declarations and the payment of withheld PAYE and contributions continue on their normal schedule. The practical value of these two months is not to postpone submission, but to reconcile the annual figures against what has already passed through Social Insurance Services and the Tax Department.
What changed: the new PAYE submission deadline for 2025
The Tax Department has announced that, by decision of the Tax Commissioner taken to further facilitate compliance by employers, the deadline for submitting the annual PAYE declaration for tax year 2025 is extended up to and including 30 November 2026.
Submission after 30 November 2026 is considered late under Article 50A(a) of the Assessment and Collection of Taxes Law No. 4/1978, as amended.
- Form: Employer's Return (TD7)
- Reporting period: calendar year 2025
- Previous deadline: 30 September 2026
- New deadline: 30 November 2026
- Date of decision: 16 September 2026
- Submission method: electronically through Tax For All (TFA)
- Authority: Cyprus Tax Department
What is the Employer's Return (TD7) and who must file it?
The Employer's Return (TD7) is the employer's declaration reporting gross salary, withheld income tax (PAYE), Social Insurance contributions and General Healthcare System (GHS/GESY) contributions for each employee.
Any employer who paid remuneration to employees during the reporting year and falls within the relevant Cyprus reporting obligations must file a TD7. In substance, the declaration reconciles the annual totals against what was withheld and remitted during the year.
Since January 2025, filing has been carried out exclusively through Tax For All. The annual form for 2025 became available in the system in mid-May 2026.
What penalties apply for late submission?
The amount of the penalty depends not on how long the delay lasts, but on the status and size of the filer. Article 50A(a) of Law No. 4/1978 sets three levels.
- Individual — EUR 150
- Legal entity whose turnover or assets exceed EUR 1,000,000 — EUR 500
- Any other legal entity — EUR 250
One point deserves separate attention: extending the submission deadline does not remove the obligation to remit PAYE and contributions on time. Monthly TD7 declarations and the corresponding payments are due on their statutory dates regardless of whether the annual declaration deadline has been extended. Late payment of withheld tax and contributions attracts interest and may carry additional charges.
How the EUR 1,000,000 threshold affects the penalty
The difference between a EUR 250 and a EUR 500 penalty comes down to a single criterion: whether the company exceeds the EUR 1,000,000 threshold. The wording of the law matters here — it refers to turnover or assets, meaning that exceeding either one of the two is enough for the higher rate to apply.
In practice this means that a company with modest revenue but significant assets on its balance sheet — property or holdings in other companies, for example — falls into the higher category alongside an actively trading business.
Which figure is taken as the basis, and as at which date it is determined, depends on how the particular company's accounts are structured. If your figures are close to the threshold, it is worth checking with an accountant before filing rather than after receiving a notice.
How to file the TD7 through Tax For All: what data and access you need in advance
The TD7 is submitted through Tax For All, so access to the company account should be prepared well ahead of time.
- An active company account in Tax For All with verified access for the responsible person
- The employer registration number and the company's Tax Identification Code (TIC)
- Annual totals for each employee: gross salary, withheld PAYE, Social Insurance and GHS contributions
- Details of payments outside base salary: bonuses, allowances, directors' remuneration
- Reconciled monthly payments for the whole of 2025 to verify the annual totals
If the company previously worked through TAXISnet, the migration to TFA is best completed in advance. Two additional months are enough time to resolve access issues without rushing.
What data should be reconciled before filing: salaries, PAYE, GHS and Social Insurance
The main risk in filing is not the submission itself, but discrepancies between payroll data, the Social Insurance contributions already remitted, and the PAYE withheld. These mismatches are the most common reason a declaration is rejected or queried by the tax authority.
- Gross salary for each employee matches the payroll records for all twelve months
- PAYE withheld in the declaration equals the tax actually remitted during the year
- Employee and employer Social Insurance contributions match the data filed with Social Insurance Services
- GHS (GESY) contributions are calculated at the applicable rates and correctly split between employee and employer shares
- The contribution cap for high earners is applied — amounts above the limit are not subject to contributions
- Data for employees who joined or left during the year reflects their actual period of employment
- Directors' and non-residents' remuneration is reported under the correct withholding rules
GHS rates for 2025 were 2.65% for the employee and 2.90% for the employer, applied within the established income cap. In the practice of GarnetWise — a boutique accounting firm in Limassol whose founder Gulnara Konstantinou is a member of ACCA and ICPAC with more than 17 years of experience in Cyprus — GHS is the most frequent source of discrepancies: an incorrect rate or an overlooked cap produces a difference that surfaces during reconciliation.
Which mistakes most often lead to rejection or a query from the tax authority?
A rejected TD7 almost always comes down to internal inconsistencies in the data rather than a technical fault in the system. Knowing the typical errors in advance makes it easier to pass reconciliation on the first attempt.
- Annual PAYE does not equal the sum of monthly payments — a request for explanation or an additional payment
- GHS contributions calculated without applying the cap — a discrepancy against Social Insurance data
- Incorrect GHS rate for 2025 — an incorrect total contribution figure
- Bonuses and thirteenth salary not reported — understated base and risk of additional assessment
- A departed employee reported for the full year — overstated accruals
- No TFA access by the deadline — late filing and a penalty of EUR 150 to EUR 500
There is also a separate category of problems: discrepancies between what the company reports in the TD7 and what the employee declares in their personal return. If the company's annual figures do not reconcile with the employee's, the tax authority may request clarification from both sides.
What to do if an error in the Employer's Return is found after filing
If an error is spotted after the TD7 has been submitted, the declaration can be corrected by filing an amended version through Tax For All. The sooner this is done, the lower the risk of claims and interest.
The course of action depends on the nature of the error: an underpayment of PAYE or contributions will require additional payment with interest, while a clerical mistake that does not affect the amounts is simpler to correct. In either case, payroll records and payment confirmations should be retained — they will be needed if the Cyprus Tax Department raises a query.
The exact correction procedure and the size of any additional assessment depend on the structure of payments and the specific figures of your business, so for borderline cases it is better to check with an accountant before filing an amendment.
Frequently asked questions about the TD7
Does the extension mean there is no need to hurry?
Only the annual declaration deadline has been extended. Monthly PAYE payments and Social Insurance contributions remain due on their statutory dates. The two additional months are better spent reconciling data than postponing the filing.
Does a company need to file a TD7 if it has only a director with no salary?
If no payments subject to PAYE and contributions were made during the year, the filing obligation depends on the employer registration status. Formal registration as an employer may still require a nil return — this is worth confirming with the Cyprus Tax Department.
How do I know whether my company falls under the EUR 500 penalty?
The higher rate applies where turnover or assets exceed EUR 1,000,000. Exceeding either one of the two is sufficient. If the figures are close to the threshold, the basis of calculation is best agreed with an accountant.
Can the Employer's Return be filed through TAXISnet?
No, the annual employer's declaration is filed only through Tax For All. TAXISnet is being decommissioned, so TFA access should be arranged in advance.
What should I do if the deadline has already passed?
File the declaration as soon as possible. The late filing penalty is set at a fixed amount, but further delay increases the risk of additional questions about discrepancies in the year's data.
Need help with payroll and TD7 filing?
If you run payroll in-house and want certainty that your annual totals will reconcile with the PAYE, Social Insurance and GHS payments already submitted, GarnetWise can help you structure payroll and statutory reporting in Cyprus, reconcile the data before filing, and prepare the declaration correctly through Tax For All. Two extra months are a good reason to go through reconciliation calmly and without penalties.
