The Cyprus “Tax For All” (TFA) Portal is Underway

On 17 January 2023, the Commissioner of Taxation informed the public of the commencement of the gradual release of the new platform Tax For All (TFA), which will replace the existing TAXISnet.

The Commissioner states that an important element for the transition to the Tax for All platform is is the User’s email as this will be used for all updates and communication.   All users are therefore requested and encouraged to update their emails as soon as possible via the TAXISnet portal as the correct email is essential for the transition of the User’s account from the old platform to the new TFA platform.

Changing the e-mail address can be done by following the instructions posted on the Tax Department’s website:

e-Services → TAXISnet → Information Material → Income Tax-Defense e-Services

e-Services → TAXISnet → Information Material → Value Added Tax Procedure for changing the electronic address in the TAXISnet system e-Services

The first stage of the gradual release concerns Indirect Tax and it will include the following:
  • Submission of VAT Returns (Under the current format. New Vat Return format expected to be available towards the end of 2023)
  • Submission of VIES Returns
  • Payments (will introduce functionality for VAT payments (payment to be performed via JCC))
  • Refunds
  • Certificates
  • VAT statements
  • Complaints
  • Communication/Q&A

The Team at Fairfax are experts in All payroll and Tax related matters,  if you are looking for an outsourced provider in Cyprus to assit either your company or yourself as an individual for and of the above related Tax isues then contact one of our team today or call + 357 25558025

Reasons to Outsource Payroll

Outsourcing is a crucial part in international business strategies. While there are many different business processes that can be outsourced, payroll, as a core business process, is a commonly outsourced function, especially for larger organisations. In this blog you will be introduced to different payroll options in Cyprus for companies and the main benefits of payroll outsourcing.

Cyprus Payroll Options for Companies

  1. Remote: Businesses may choose to operate under a single payroll system for all employees, by adding employees in Cyprus to your parent company’s payroll. One option for a non-resident company to payroll its employees (local & foreign) in Cyprus is to use a fully outsourced service like a GEO or PEO, which will employ and payroll the staff on their behalf.
  2. Internal: Larger companies with a commitment to Cyprus may want to run their own local payroll for all employees, foreign and local. In order to do this, companies will have to complete the incorporation, register the business and then hire the necessary staff. For this approach to be successful, it is necessary to employ an in country human resources professional who has the knowledge on Cypriot payroll and can fulfil all tax, withholding tax and payroll requirements. This is a costly approach, and the company will need a local accounting firm and potentially legal counsel to ensure full compliance with Cypriot employment laws.
  3. Local Payroll Administration: In some cases, companies will register their business in Cyprus under one of the forms available but prefer to have another company administer payroll. This occurs through a payroll provider. It is important to note, that the company, as the Employer of Record, still carries full responsibility for compliance with employment, immigration, tax, and payroll regulations, but the payroll calculations, payments and filings can all be outsourced to the payroll provider.
  4. Global PEO: Some companies can opt to work with Globalisation Partners through Cyprus payroll outsourcing. This means the global partners will add your companys’ employees to their payroll and handle the compliance as the Employer of Record.

Benefits of Payroll Outsourcing

Saves time

Payroll overall is a time-consuming process that demands a lot of attention to detail. This often comes at a cost of valuable time that could otherwise be spent on more pressing priorities such as building revenue or serving customers. By outsourcing to a reputable provider, owners have more time to focus on what matters most to them.

Prevents mistakes

By hiring professionals that entail expertise in the field of payroll and whose sole responsibility and focus is payroll, companies mitigate the chances of errors occurring, deadlines not being met, omissions arising, or late payroll tax filings happening. For the employer, payroll errors can cause fines and penalties for improperly calculated tax obligations. Generally speaking, business owners are not experts in the complicated world of government tax regulations. Mistakes can lead to audits and penalties – situations no business wants to find themselves in. Therefore, given all the complicated tasks and the potential for mistakes, processing payroll on your own may cost you more in the long run than what you may save initially.

Minimises expenses

Outsourcing payroll prevents your business from having to hire an expert in the field. This reduces overhead costs. As well as this, a company saves money by saving time. Employees need to be paid for their hours of work and by hiring an affordable full-service provider, this can be avoided. Outsourcing payroll can also help quantify visible and hidden costs around payroll management.

Compliance guarantee

Payroll is a complex and risky operation. Evidently, it can be very challenging and difficult if you do not have the expertise in this field. Federal, state, and local payroll tax are becoming more and more detailed which suggests that payroll departments need to pay close attention detail. By lacking the necessary research with regards to payroll legislation, your company risks calculating or filing your payroll taxes incorrectly or late, which can lead to major problems. Outsourced payroll providers are on top of labour code and legislations, making it easier for employers to remain compliant.


Since payroll providers are solely responsible for this domain, they can dedicate time to resolving any questions or issues employees may have, which can lead to quicker response times. Furthermore, as payroll specialists, they can process even the most complex payrolls at great speed, providing a quick turnaround time on your payroll when required.

Enhanced security of payroll data

Payroll procedures are complex and potentially a risky business operation. Even with trusted partners, there is always the risk of identity theft, embezzlement, or tampering with company records for personal gain. Consequently, outsourcing payroll to a stable and experienced provider can offer a “safe heaven” for your confidential payroll data. As well as this, redundant backups can be created and it goes without say that payroll providers usually invest in state-of-the-art systems for storing and protecting data, simply due to the fact that it is part of the service provided to clients.

To have all of these benefits contact the Fairfax team for more information and to receive an no obligation quote of an outsourced payroll solution specifically for your organisation email; or call +357 25558025,  0ur expert team will be happy to help!

Announcement regarding Cyprus Social Insurance Contributions

Cyprus Social Insurance Contributions

Fairfax would like to inform our clients and associates that further to an announcement made by the Social Insurance Services, the maximum level of emoluments for 2023 is set at €60,060, therefore weekly emoluments of €1,155 and monthly emoluments of €5,005.

The rate of contributions remains unchanged and applies to both the Employer and the Employee. The rate is currently 8.3%, which has remained the same since 2019 and will remain the same until 2024, at which point it will then become 8.8% and thereafter will increase by 0.5% every five years until it reaches 10.3% , as from 1 January 2039.

Other Employer’s contributions

The other Contributions that an Employer must pay are highlighted in the table below;

Social Cohesion Fund 2,0*
Redundancy Fund 1,2
Industrial training Fund 0,5
Holiday Fund ( if no exception applies) 8,0

*Social Cohesion Fund has no maximum level and therefore is calculated on total emoluments

All other contributions are capped to the monthly maximum lever as this is adjusted every year by the Social Insurance Services.

The expert team at Fairfax  are available should you require any further information or clarifications on this or any other payroll or contribution issues on or by calling +357 25558025



Non-Taxable Individuals Exempt from Income Tax Declaration – FormTD1 2022

Fairfax would like to inform you that The Council of Ministers have announced a new ministerial decree (No.373/2022), that individuals whose gross annual income is below €19,500 are exempt from submitting a personal income tax declaration for the tax year 2022 (Form TD1).

As a reminder, in August 2020 the House of Representatives amended the Assessment and Collection of Taxes Law making it mandatory for all taxpayers to submit tax returns irrespective of their income level.

All other individuals whose taxable income is above the threshold should prepared and submit electronically their personal income tax return within the given deadline that is set by the Tax Department every year.

The expert team at Fairfax  are available should you require any further information or clarifications on this or any other tax issues on or by calling +357 25558025


Extension of the Deadline for Submission of Individuals’ Income Tax Return 2021

On the 29th July, the Ministry of Finance issued a Decree (315/2022) which was published in the Official Gazette of the Republic of Cyprus.

The Decree provides an extension of the deadline for the electronic submission of the following physical persons:

  • Employees
  • Pensioners
  • Self-Employed without Statutory Account

The new deadline for submission is now the 31st August 2022 .

The deadline for the payment of the related tax via self-assessment has been extended to the same date.

The expert team at Fairfax are on hand to assist you with your Tax Reporting, and guidance on any Payroll related matters. Call today on 2555 8025 or email  accounts@fairfaxyeaman , your trusted partner and local expert.