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  • February 7, 2025
  • Connor Corporate Services Ltd
tax cyprus

Important Update: Transition to TFA System for TF7 Declarations

Connor Corporate Services Ltd is committed to keeping employers informed about regulatory changes that impact compliance processes. Starting in mid-2025, the Tax Department will mandate the exclusive use of the TAX FOR ALL (TFA) system for submitting Withholding Tax & Contributions (TF7) Declarations and related payments. Here’s what you need to know to prepare for this transition.

Transition Period: What to Expect Until TFA Is Fully Operational

While the TFA system is being phased in, employers must follow these guidelines to ensure seamless compliance:

1. Submitting TF7 Declarations for 2023 and Prior Years

  • Continue using the TAXISnet system for all TF7 Declarations related to 2023 and earlier tax years.

  • This applies only to declarations, not monthly payments.

2. Monthly Payments for 2023–2025

  • Withholding tax and contribution payments for 2023, 2024, and 2025 must be made via the Tax Portal.

  • Ensure payments are up-to-date to avoid penalties during the transition.

Post-TFA Implementation: Key Changes Starting Mid-2025

Once the TFA system is fully operational, employers must adhere to the following:

1. Exclusive Use of TFA for Declarations and Payments

  • All TF7 Declarations and related payments must be submitted through the TFA system.

  • The Tax Portal and TAXISnet will no longer be accepted for these processes.

2. Mandatory Monthly TF7 Declarations (2025 Onwards)

  • Starting in 2025, employers must submit monthly TF7 Declarations for each payment period.

  • Even if payments were made via the Tax Portal, declarations for January 2025 onward must be filed through TFA.

3. Employee Tax Identification Number (TIN) Requirement

  • A valid TIN for every employee will be mandatory for submitting monthly declarations.

  • Verify employee TINs now to avoid delays post-implementation.

Support for Employers: Resources to Simplify the Transition

The Tax Department and Connor Corporate Services Ltd are here to help:

  • Information Guides: Detailed guides will outline TFA system workflows, submission steps, and troubleshooting.

  • Webinars: Live sessions will provide hands-on training for using the TFA platform.

  • Future Updates: The official start date for TFA submissions will be announced later—stay tuned for alerts.

Why This Transition Matters

The shift to TFA aims to modernize tax compliance processes, reducing administrative burdens and enhancing accuracy. By centralizing declarations and payments in one system, employers can:

  • Streamline reporting.

  • Minimize errors.

  • Ensure timely compliance with evolving regulations.

Next Steps for Employers

  1. Audit Employee TINs: Confirm all employee TINs are valid and recorded.

  2. Monitor Communications: Watch for Tax Department announcements about TFA training and launch dates.

  3. Plan Ahead: Begin transitioning internal processes to accommodate monthly declarations in 2025.

Connor Corporate Services Ltd is ready to assist with payroll compliance, TIN verification, and TFA onboarding. Contact us today for personalized support.

 

Stay compliant, stay efficient.
Connor Corporate Services Ltd – Your Partner in Seamless Tax Compliance.

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