Cyprus PAYE employer declarations (form TF7) have been filed on TFA at taxforall.mof.gov.cy since early 2025. Monthly TF7 declarations are due by the last working day of the following month. Since July 2025, PAYE payments are also made through TFA — the Tax Portal no longer accepts PAYE payments. After year-end, employers must give each employee an IR63 certificate by 30 April.
Cyprus employers must register all employees with the Social Insurance Services within 1 day of hiring and pay combined employer-employee social insurance of 28.5% on gross salary.
The Two PAYE Declaration Types
| Declaration | Name | Deadline | What It Covers |
|---|---|---|---|
| TF7 Monthly | Monthly employer PAYE declaration | Last working day of following month | Each month's payroll, all employees |
| TF7 Annual | Annual employer PAYE summary | 31 July of following year | Full year summary, all employees |
Both are filed on TFA. Since 2025, the annual TF7 deadline was extended for 2024 data to 31 March 2026 as a transitional measure.
What the Monthly TF7 Declares
For each employee, the monthly TF7 requires:
| Field | Description |
|---|---|
| Employee TIC | Tax Identification Code (9 digits) |
| Gross salary | Monthly gross salary in EUR |
| Income tax withheld | PAYE deducted from salary |
| GESY employee (2.65%) | Health contribution withheld |
| GESY employer (2.90%) | Employer health contribution |
| Social Insurance employee (8.8%) | Employee SI contribution |
| Social Insurance employer (8.8%) | Employer SI contribution |
| Other contributions | Redundancy, HRDA, Social Cohesion |
TFA automatically calculates some totals based on your inputs.
Step-by-Step: Filing the Monthly TF7 on TFA
Step 1 — Log In to TFA
Go to taxforall.mof.gov.cy using your company credentials.
Step 2 — Navigate to PAYE
From your dashboard: "Tax Returns" → "Employer Declarations" → "TF7 Monthly." Select the month and year.
Step 3 — Add Employee Payroll Data
For each employee:
- Enter their TIC
- Enter gross salary for the month
- Enter the calculated deductions (income tax, GESY, Social Insurance)
TFA validates the TICs against the taxpayer register.
Step 4 — Review Totals
TFA shows totals for all employees. Review against your payroll records.
Step 5 — Submit and Generate PRN
Submit the declaration. TFA generates a PRN (Payment Reference Number) for the PAYE and Social Insurance amounts due.
Step 6 — Pay
Pay using the PRN via:
- TFA directly — Click "Pay Now" after submission
- JCCSmart at jccsmart.com — Enter the PRN
Important: Since July 2025, Tax Portal no longer processes PAYE payments. Only use TFA or JCCSmart.
Income Tax Calculation for Employees
The amount of income tax to withhold depends on the employee's expected annual salary. Cyprus uses a progressive income tax system with these brackets (2026):
| Annual Income | Tax Rate |
|---|---|
| €0 – €22,000 | 0% |
| €22,001 – €30,000 | 20% |
| €30,001 – €37,500 | 25% |
| €37,501 – €60,000 | 30% |
| Over €60,000 | 35% |
For PAYE withholding: Annualise the monthly salary, calculate the annual tax, and divide by 12 to get the monthly withholding amount.
Example: Employee earns €2,500/month = €30,000/year.
- First €22,000: €0 tax
- Next €8,000 (€22,001 to €30,000): 20% = €1,600
- Annual tax = €1,600
- Monthly withholding = €1,600 ÷ 12 = €133.33/month
Most payroll software handles this calculation automatically.
The Annual TF7: Year-End Summary
By 31 July of the following year, employers must file a TF7 annual summary on TFA. This covers:
- All employees who worked at any point during the year
- Total gross salary paid to each employee
- Total tax, GESY, and Social Insurance withheld from each employee
- Total employer contributions
The annual TF7 serves as the definitive record for the Tax Department. Any discrepancies between monthly TF7 declarations and the annual summary will trigger questions.
IR63: Employer Certificate for Employees
By 30 April of the year following the tax year, every employer must provide each employee with an IR63 certificate. This document shows:
- Employee name and TIC
- Employer name and TIC
- Tax year
- Total gross salary paid
- Total income tax withheld
- Total GESY withheld (employee portion)
- Total Social Insurance withheld (employee portion)
Employees need the IR63 to file their personal income tax return (TD1). Failing to provide IR63 by 30 April can complicate the employee's own tax compliance.
IR63 is not submitted to the Tax Department — it is given directly to the employee.
PAYE for Owner-Directors Who Take a Salary
If the company owner pays themselves a salary (as a director or employee), the company is both employer and employee for PAYE purposes:
- The company declares the salary in TF7 monthly
- The director's income tax and GESY are withheld from the gross salary
- The company pays both employee and employer contributions
Key decision: Many Cyprus solopreneurs choose dividends-only instead of a salary to avoid PAYE complexity and Social Insurance costs. For a comparison of costs, see our salary vs. dividends guide.
Penalties for PAYE Non-Compliance
| Violation | Penalty |
|---|---|
| Late TF7 declaration | Fines (variable) + 1.75%/year interest on tax |
| Late PAYE payment | 1.75%/year interest |
| Underpayment of PAYE | Penalties + interest |
| Not providing IR63 to employee | Violation |
PAYE Migration Timeline
| Date | Change |
|---|---|
| Early 2025 | TF7 monthly and annual moved to TFA |
| July 2025 | PAYE payments moved from Tax Portal to TFA/JCCSmart |
| 2026 | TD4 and income tax declarations expected to migrate to TFA |
Monthly PAYE filings and payroll management are typically handled by your accountant or bookkeeper. Find a Cyprus bookkeeper or accountant who provides payroll services and monthly TF7 submissions.