Monthly and Annual Employer’s Declarations for Withheld Taxes and Contributions (TD7): New Submission Deadlines and Important Clarifications

The Cyprus Tax Authorities (CTA) shared significant developments regarding the filing of the Monthly and Annual Employer’s Declarations for Withheld Taxes and Contributions (TD7). The announcement clarifies which employers are required to file these declarations, outlines the submission method, and sets out revised deadlines for monthly and annual submissions. Employers should pay close attention to these regulations so as to carry out their tax-related responsibilities correctly and steer clear of unnecessary administrative hurdles.

Which Employers Should Submit TD7 Declarations?

The duty to produce an Annual Employer’s Declaration and the Monthly Employer’s Declarations for Withheld Taxes and Contributions (for all months of the relevant year) applies only to employers who:

• take out and pay Income tax;
• take out and pay General Healthcare System (GHS) contributions; and/or
• have to pay on a monthly basis Employer Contributions to the General Healthcare System (GHS) to the Cyprus Tax Authorities.

These filing obligations apply only where one or more of the above tax or contribution conditions are met.

Clarifications on the Submission Mechanism

Through its clarification, the CTA emphasized the need for employers to file the monthly TD7 Declaration before disbursing withheld tax (or contribution) payments through the Tax Department.

This regulation is in place because the Tax For All (TFA) system only generates the corresponding liabilities upon the successful submission of the monthly TD7 declarations. Therefore, if an employer fails to file their monthly declaration, their liabilities cannot be established in the system.

Moreover, CTA advises that the monthly TD7 declarations should include information about all individuals even when nothing was deducted from their wages or contributions were not paid on their behalf.

All such workers whose names are not in the monthly reports need to be accounted for in the final DecemberTD7 report along with their annual incomes.

Employers Who Have Employees Getting Salaries without Having Withheld Payments

Some employers might still have to fulfill reporting requirements even if their employees (and possibly officers like directors and secretaries) are not subject to any withholding of tax or payments of contributions.

In other words, even if:

• no Income Tax is being deducted from the wages;
• the amount of contributions (of the employees) payable to the Cyprus Tax Authorities is zero; and/or
• the employees should have paid no contributions on behalf of their Employers to the General Healthcare System,

the said employer should still have to:

• fill out an Annual Employer’s Declaration;
• produce at least one Monthly Employer’s Declaration for Withheld Taxes and Contributions.

Companies Without Employees or Without Remunerated Employees

The CTA clarified for companies that have no employees or employees who are not being paid.

If a company has no employees at all, it does not have to file any TD7 declarations.

Further, in accordance with FAQs on the CTA’s website for the 2025 tax year, entities that have employees who are the only employees and who earn no remuneration are also exempt from filing TD7 declarations for that year. Moreover, it is stated that more guidance for later years might be released separately at later dates.

If companies that are not required to file TD7, due to the absence of workforce or lack of payment, receive notice for TD7 filings, they can simply ignore that notice.

The New TD7 Submission Deadlines

Among the changes introduced by the Cyprus Tax Authorities, the following deadlines for submitting the appropriate declarations are:

• TD7 declarations for the months from July to December 2025 are to be finalized before 31 March 2026.
• Annual TD7 declaration for the tax year ended 2024: by 31 March 2026.
• Annual TD7 declaration for tax year 2025: by 31 May 2026.

Employers should ensure that both the declarations and the corresponding tax and contribution payments are completed within the applicable deadlines.

Conclusion

With this latest clarification from the Cyprus Tax Authorities, employers have been advised of the exact scope of TD7 reporting, the sequence by which declarations and payments should be submitted to the Tax For All system, and updated timelines for making filings. Companies should confirm whether they are within the group that needs to report, make sure monthly declarations are submitted earlier than the associated payments, and comply with the new deadlines to stay in line with tax obligations.

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