More declarations and higher charges this year: What changes for taxpayers

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The process for submitting individual income tax returns for the 2025 tax year has officially begun, with the Tax Department urging taxpayers to file their returns promptly through the Taxisnet system.

Speaking on Sigma TV’s programme Mesimeri Kai Kati, Tax Department spokesperson Marios Michael said that employees, pensioners and self-employed individuals whose total gross income for 2025 exceeds €19,500 are required to submit a tax return.

According to Michael, this year’s tax return process remains largely unchanged compared with last year, while automated features designed to simplify filing continue to be available.

“There are no significant changes to the tax return compared with last year, and any differences that do exist do not affect the overwhelming majority of taxpayers,” he said.

Automated filing features

The system continues to provide automated functions, including the automatic calculation of totals across different sections of the tax return. Pension income and related deductions are also automatically populated for pensioners.

Where a tax liability arises, the amount due is generated automatically once the return is submitted. Taxpayers can then settle the balance through internet banking or via the JCC Smart platform.

The Tax Department has also published guidance material on its website under the section “Taxisnet – Individual Income Tax Return 2025”, encouraging taxpayers to review the information before completing their submissions.

Deadline set for 31 October

The deadline for submitting income tax returns and paying any taxes or contributions due has been set for 31 October 2026. No interest or additional financial charges will be imposed before that date.

However, taxpayers who miss the deadline will face an administrative penalty of €150.

“The surcharge was €100 in previous years, but following the tax reform approved at the end of 2025, it has increased to €150 with the aim of strengthening tax compliance,” Michael explained.

Increase in tax returns expected

Asked about the number of taxpayers expected to file returns this year, Michael said it is difficult to provide an exact estimate because the €19,500 income threshold means that some taxpayers enter the filing obligation each year while others fall below it.

Nevertheless, the Tax Department expects a slight increase in the total number of returns submitted as part of efforts to broaden the tax base. Around 337,000 income tax returns were filed in 2025.

Tax refunds and scam warning

Michael noted that tax refunds are processed throughout the year immediately after a return has been assessed and where a credit balance is identified. Refunds are paid directly into the bank account registered with the Tax Department.

He also reiterated a warning to the public regarding suspicious emails and online scams.

“The Tax Department will never request banking details or other personal information on the pretext that such information is required to process a tax refund,” he stressed, referring to a growing number of fraudulent messages aimed at deceiving taxpayers.

Comments on ‘Mafia State’ allegations

Asked to comment on tax audits in relation to the so-called “Mafia State” allegations, the Tax Department spokesperson declined to address the matter directly.

He stated only that the 12-year period for tax investigations is established under existing legislation.

“The 12-year timeframe is provided for by law. Anyone who reviews the relevant legislation can verify the provision that sets out this specific period,” he said.

When asked whether the department intends to investigate individuals allegedly connected to the case, Michael said he could not make any further comment, adding that the public would be informed should any official announcement be made.

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