Last year’s tax returns shift to TAXISnet as TFA rollout pushed to 2027

Taxpayers in Cyprus will submit their 2025 income tax returns through the existing TAXISnet system following a decision by the Tax Department in April to delay full implementation of the Tax For All (TFA) platform.

The Tax Department confirmed that employees and self-employed individuals without audited accounts will continue using TAXISnet for the current filing year, reversing earlier expectations that the newly formed TFA, would handle income tax submissions.

Officials said the decision was taken as part of a staged transition designed to avoid disruption while the new system and tax reform package is finalised. The tax reform was introduced in January and will apply for the 2026 tax year to be filed in 2027.

Speaking to the Cyprus Mail, the tax commission said the decision was taken due to implementation challenges and the need to stabilise the reform before full deployment.

The office described the shift as a practical measure.

“The demand of the reform and the speed of change made it difficult for the industry to adapt to a new system at this stage,” a spokesperson said, adding that a phased approach was required to avoid disruption to compliance and processing.

The same source said the decision to retain TAXISnet for the current filing cycle was deliberate and temporary.

“It is wiser to use TAXISnet for one year more before the reform [comes in to effect], and then we will roll out Tax For All fully,” the official said, describing the move as a “strategic decision”.

The current legal deadline for filing 2025 personal income tax returns remains July 31, though the submission window itself has still not opened.

Authorities have indicated taxpayers will receive additional time once filings become available and said no penalties or interest will apply within any revised timeframe eventually announced.

The Tax department had initially signalled that Tax For All (TFA) would gradually replace TAXISnet as part of Cyprus’ wider tax reform programme. However, after technical and operational setbacks during 2025, parts of the system reverted to older infrastructure.

The commission assured that “the April announcement clarified the approach for the next return cycle in 2027, when the system will be fully operational.”

“Everyone will need to move to TFA, but not for this year’s filing cycle,” the department said, adding that the full migration would take place after the system is fully tested and integrated across tax services.

The TFA platform was introduced as a centralised digital system intended to unify tax registration, filing and payment services through CY Login.

However, its rollout has been repeatedly delayed due to software integration challenges, including the development of new forms, calculation tools and cross-departmental data systems.

Authorities have acknowledged that extensive preparation is still underway.

More than 12,000 stakeholders, including accountants and employers, have attended training sessions on the new system, which will eventually govern all tax declarations once fully implemented.

The reform package, approved by parliament at the end of last year, significantly expands filing obligations.

From the 2026 tax year onward, all Cyprus tax residents aged between 25 and 70 will be required to submit annual income tax returns regardless of income level.

Officials emphasise that this obligation is independent of whether tax is payable.

Under the new framework, the personal tax-free threshold rises from €19,500 to €22,000, with income up to that level taxed at zero percent.

However, taxpayers earning below the threshold will still be required to file returns once the residency-based system comes into effect.

The reform also expands reporting requirements across multiple income categories, including employment income, pensions, rents, dividends, interest, self-employment income and cryptocurrency gains.

Additional deductions for housing, family status, energy upgrades and insurance will be processed through a new ‘T.F.59’ form integrated into employer withholding systems.

While registration for new taxpayers is already conducted through TFA, and certain VAT and employer functions have migrated to the platform, the full system remains under phased implementation linked to CY Login identity services.

المصدر: Cyprus Mail