tax reform — Cyprus’ tax reform, set to take effect on January 1, 2026, aims to provide direct financial benefits to taxpayers through revised income tax withholding scales. According to the audit office, these changes will automatically adjust the payroll for state officials, employees, pensioners, and hourly government personnel.
- For further information or clarifications, interested parties are advised to reach out to the tax department directly.
The significant shift in tax policy means that individuals with annual taxable incomes exceeding €22,000 will need to take proactive steps to enjoy the full range of benefits offered by the new deductions, exemptions, and tax reliefs. Taxpayers are encouraged to consult the explanatory tax guide, FAQs, and illustrative examples provided by the Tax Department, which detail how to complete the necessary forms.
Active state officials and employees must submit their declarations electronically via [email protected], ensuring that the payroll sector of the general accounting office processes the required information. For retired state officials and employees, the tax department’s declaration for claiming tax deductions (T.F.59) must be filled out and sent to [email protected]. Those under the new professional pension plan must also complete the T.F.59 form and direct it to [email protected].
Hourly government personnel have a specific declaration prepared by the general accounting office that they must complete and send to [email protected]. Importantly, individuals who do not qualify for additional tax deductions are not required to file any declaration.
Starting in February 2026, data entry into the relevant electronic systems will commence, with processing prioritised accordingly. Adjustments to income tax withholding will be implemented over the remaining months of the year, contingent on each individual’s annual taxable income.
For further information or clarifications, interested parties are advised to reach out to the tax department directly.
