Cyprus Tax Department processed 373,000 old tax returns in one year

In 2025, the Cyprus Tax Department processed 373,000 old tax returns as part of a programme to reduce the longstanding backlog of unresolved cases.

The campaign to process accumulated tax returns began in 2017. It includes reviewing old returns, paying tax refunds due, adjusting tax assessments, calculating liabilities and assessing taxes. In total, nearly 2 million returns have been processed under the programme in recent years.

In 2025, around 262,000 individual tax returns for the 2008–2010, 2013 and 2023 tax years were processed. They resulted in approximately €5.1 million in income tax being assessed as payable, while tax refunds totalled €20.7 million, excluding interest.

In addition, around 35,900 corporate tax returns for 2022 were processed. As a result, €1.2 million in income tax was assessed as payable and €6.1 million in refunds was provided for.

Tax Department employees working overtime processed an additional 75,500 tax assessments for individuals. These resulted in €37.7 million in income tax being assessed as payable, while refunds totalled €11.6 million, excluding interest.

Objections from taxpayers are also being reviewed as part of the programme. Established in 2024, the Independent Objections Review Committee considered 8,451 applications in 2025.

The Tax Department is also stepping up enforcement of tax legislation. In 2025, two nationwide units were established — a tax compliance unit and a nationwide call centre.