In Cyprus, employers have been granted additional time to meet their tax obligations. According to an official announcement by the Tax Department, companies and self-employed employers may submit PAYE withholding tax returns and employer contribution declarations, as well as pay the corresponding amounts, without penalties or interest until January 31, 2026.
Who the Extension Applies To
The extension applies to employers who failed to submit monthly PAYE returns for the period July to November 2025 and/or did not remit the corresponding income tax and social insurance contributions. The authorities decided to grant extra time in order to ease the burden on businesses and allow them to settle their obligations without financial sanctions.
The Tax Department emphasizes that this measure is temporary and is intended to support companies that faced operational or financial difficulties during the year. After the stated deadline, standard penalties and interest will be applied in full.
Business Support and Tax Compliance
The deadline extension is seen as part of a broader policy to support entrepreneurship and encourage voluntary tax compliance. In recent years, Cyprus has been actively modernizing its tax system by introducing electronic services and simplifying interactions between the state and businesses. This is particularly relevant amid rising personnel costs and broader economic uncertainty in the region.
According to the Ministry of Finance, electronic submission remains the preferred method, and employers are advised not to leave the process until the final days in order to avoid technical delays or errors.
What Employers Should Keep in Mind
The authorities remind employers that the opportunity to file returns without penalties is valid only until January 31, 2026. After that date, outstanding amounts will be subject to standard interest and administrative penalties. Companies are therefore encouraged to review their calculations in advance, ensure data accuracy, and complete the process within the prescribed timeframe.
Experts note that such measures help maintain labor market stability and create a more predictable business environment, especially for small and medium-sized enterprises, which are most sensitive to financial pressures.