Cyprus: Submission of withholding tax declarations and payments with respect to certain transactions with nonresidents must be made via TFA system
Transactions include payments with respect to intellectual property (IP) rights
The tax department announced that submission of withholding tax and social contribution declarations, along with corresponding payments, with respect to certain transactions with nonresidents, must be made exclusively through the Tax For All (TFA) system.
Background
Under Article 24 of the Income Tax Law (Law 118(I)/2002), any person who enters into a contract with any individual who is not a resident of Cyprus or with any company that is not engaged in conducting any business in Cyprus, in relation to transactions included in Articles 21, 22, 23, and 23A, must withhold and pay income tax and/or social contribution in accordance with Articles 2 and 19 of the GESY Law (89(I)/2001).
Transactions under Articles 21, 22, 23, and 23A include:
- Intellectual property rights
- Non-cooperative jurisdictions
- Film rentals
- Professional profits
- Artist profits
- Exploitation of the continental shelf
Read an October 2025 report prepared by the KPMG member firm in Cyprus