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Form T.D.59: the declaration that sets the tax on your salary

T.D.59 is what an employee gives the employer so that the tax withheld each month is the right tax. It is where the children, the housing, the insurance and the relocation exemptions actually reach your payslip — and leaving it blank means paying the maximum all year and waiting for a refund.

Checked against its sources on 25 September 2026

Who this is for

You need this if

  • You are employed in Cyprus and your employer withholds tax from your pay.
  • You have deductions to claim — children, rent or housing loan interest, home insurance, provident fund, life insurance, GESY, union subscriptions.
  • You qualify for one of the relocation exemptions: T.D.59 is how it reaches the monthly payslip instead of waiting for the return.
  • You started a job in the middle of the year, or changed employer, and the withholding has gone strange.

You do not need this if

  • You are self-employed. Your tax runs through the temporary tax instalments, not through PAYE.
  • You are looking for the annual return. T.D.59 is a declaration to your employer, not to the Tax Department, and it does not replace the return.

What to prepare

  • Your name, social insurance number and tax number, plus a home address, email and telephone — all six are compulsory fields on the form.
  • No salary figures: lines A1 and A2, the year’s pay and benefits, are left to the employer (notes 1 and 16 of the form).
  • Any other income you want taken into account: gross rents, pensions, income from other sources.
  • The figures for the deductions you will claim: fund contributions, life insurance premiums with the insured sums, GESY, professional subscriptions.
  • For the 2026 deductions, the final amount per category — the form does not ask about income criteria or the number of children.

Steps

  1. 1

    Fill in Part A: your income from other sources

    Part A opens with salaried services and benefits that fall within the meaning of social insurance income and those that do not, but those two lines are the employer’s: the form asks you to complete it leaving out A1, A2, A6, A8 and B6. Your part is the rest — social insurance and widow’s pensions, gross rents, income from other sources, and the share of it that is not taxable. It is also where you elect separate taxation for a widow’s pension, or for AIF carried interest and UCITS performance fees taxed at the special 8% rate, with a minimum tax of €10,000; you tick the box and the employer enters the amounts.

  2. 2

    Fill in Part B: everything that reduces the tax

    Union and professional body subscriptions; the first-employment deductions, which is where the 20%, 25% or 50% relocation exemption is claimed; home insurance against natural disasters, up to €500; the deductions for rented property — capital allowances, interest and the 20% expenditure allowance; then pension, provident, health and medical fund contributions, GESY, life insurance premiums, the deduction for dependent children, rent or interest on a serviced loan for the main residence, energy upgrade or electric vehicle expenditure, and investment in innovative companies.

  3. 3

    Enter the new deductions as a single figure per category

    For the deductions introduced by the 2026 reform, the form wants the final amount for each category and nothing else — no income criteria, no number of children. The department’s own example: with two dependent children you write a child deduction of €2,250, being €1,000 for the first and €1,250 for the second.

    PracticeBecause the form asks for the result rather than the working, an arithmetic slip here is invisible to the employer and shows up months later as an underpayment.

  4. 4

    Claim the relocation exemption here, not by application

    None of the three exemptions — 20% under article 8(21A), 25% under 8(21B), 50% under 8(23A) — has an application-and-approval procedure. Each is claimed through the employer’s PAYE by completing T.D.59, and the evidence stays with you. The older 8(21) and 8(23) still cover employment that started before the new articles, and go on the same line. Only one of the three may be claimed in a tax year.

  5. 5

    Sign the declaration

    The form carries a declaration that you have read the instructions and that the information is true and correct, with your signature and the date. The notes on the second page are part of the form, not decoration: they define what belongs in each line.

  6. 6

    Let the employer do Part C

    Part C is the employer’s computation: the tax on the chargeable income at the 2026 bands — nothing to €22,000, then 20%, 25%, 30% and 35% — divided by twelve or thirteen for the monthly deduction, or by fifty-two for a weekly one, plus the GESY withholding, which stops once the income it is charged on passes €180,000 in the year.

  7. 7

    File a new one when something changes

    A T.D.59 describes a year as you expect it to be. A new employer, a raise, a new child, a house move, the start or end of an exemption — each of them makes the old declaration wrong, and the fix is a fresh form rather than an adjustment at the end of the year.

Time, money, deadlines

What it is
a declaration to your employerUnder the Income Tax Law 118(I)/2002, for computing the tax the employer withholds.
Compulsory fields
name, social insurance number, address, email, TIN, telephoneMarked with a star on the form.
Home insurance deduction
up to €500Against natural disasters. One of the lines in Part B.
Child deduction, as entered
one total figureTwo children: €2,250 — €1,000 plus €1,250. No income criteria are declared on the form.
Relocation exemptions
claimed hereThe 20%, 25% and 50% exemptions reach PAYE through this form; only one per tax year.
Tax bands used in Part C
0 / 20 / 25 / 30 / 35%The 2026 bands: nothing to €22,000, then to €32,000, €42,000, €72,000 and above.
Monthly withholding
annual tax ÷ 12 or ÷ 13Depending on whether a thirteenth salary is paid; weekly is ÷ 52.
GESY withholding stops at
€180,000Once the income it is charged on passes the annual cap.

Where each line comes from in the calculator

The calculator asks for the same things as the form. Fill it in, and each figure below is what goes on the line next to it; the form page lays them out on the form itself.

LineCalculator field
A1Gross SalaryTimes 12, or times 13 with “13th Salary” ticked. On the form itself A1 and A2 are filled in by the employer, not by you.
A2Benefits in kindUnder “Employer benefits, other income and deductions”: a company car, housing and other benefits that carry no social insurance.
A3A3 PensionBox A3(b) is “D14: Withhold tax from pension”, if you want this employer to withhold tax on the pension.
A4A4 Gross RentsGross rent for the year. The calculator works out the 20% allowance on it and puts it in B4.
A5A5 Other IncomeIncome from a previous employment, pensions from other sources and the like.
A7A7 Non-taxableThe part of A5 that is not taxable.
A9A9 Widow’s PensionWith “Tax separately” ticked if you choose 20% on the amount above €22,000.
A10A10 AIF/UCITS Carried InterestIf you choose the special 8% rate, which carries a minimum tax of €10,000.
B1Union Subs
B2Tax Exemption20%, 25% or 50% — the amount of the exemption, not the rate.
B3Home InsuranceAgainst natural disasters, up to €500.
B4B4: Interest expensesPlus the 20% of “A4 Gross Rents” the calculator adds by itself.
B5Other deductions (per year)The employer will ask for evidence.
B7Provident/Pension, Health InsuranceThe calculator adds the social insurance on this salary by itself. B7 to B9 take only what this employer does not deduct.
B8General Healthcare SystemA result line: the calculator works out GESY on the salary itself, there is nothing to enter.
B9Life InsuranceNo more than 7% of the sum insured. B7, B8 and B9 together are capped at a fifth of income.
B10ChildrenAs one total: two children are €2,250. “Single Parent Family” under Family Status doubles it.
B11HousingUp to €2,000, if the income criteria are met.
B12Eco upgradeUp to €1,000, if the income criteria are met.
B13Innovative Inv.No more than 50% of income after the other deductions.

Where people go wrong

  • Not filing one at all. Without a T.D.59 the employer withholds without your deductions, and the money comes back only after the return is assessed.
  • Declaring the exemption you cannot use. Only one of the three relocation exemptions may be claimed in a tax year, and the 50% needs pay above €55,000 while the 20% needs a first employment that has not changed.
  • Writing the calculation instead of the result in the new deduction lines. The form asks for the final amount per category — €2,250 for two children, not the two components.
  • Forgetting rented property in Part B. Capital allowances, interest and the 20% allowance belong in B4, and leaving them out makes the employer withhold more tax from your salary. The tax on the rent itself is not withheld by the employer at all: it is paid through the provisional tax, a T.D.5 declaration under code 0200 filed by 31 July.
  • Leaving the old declaration in place after a change of employer, a raise or a new child. Each of those makes the year’s estimate wrong.
  • Treating T.D.59 as the tax return. It goes to the employer, covers the year ahead, and does not discharge the duty to file the return afterwards.
  • Ignoring the notes on page two. They define what each line means, and the department’s FAQs sit behind them.

Anything marked “practice” is what the department does in the office, not a rule you can hold it to. Rules carry a source.

Forms and portals

Questions

What is form T.D.59 for?

It is the employee’s declaration for claiming tax deductions, given to the employer so that the income tax withheld each month reflects your actual income and your deductions. It is made under the Income Tax Law 118(I)/2002 and covers one tax year.

What happens if I do not file one?

The employer withholds tax without your deductions and exemptions, which means too much tax every month. Nothing is lost permanently — the return settles it — but the money sits with the department until the assessment, instead of in your account during the year.

How do I claim the 20%, 25% or 50% exemption?

On this form, in the first-employment line of Part B. None of the three has an application-and-approval procedure with the Tax Department: you claim it through the employer’s PAYE and keep the evidence yourself. Only one of the three may be claimed in a tax year.

How do I enter the child deduction?

As one final figure for the category. The department’s example is two dependent children: you declare €2,250, which is €1,000 for the first and €1,250 for the second. The form does not ask about the income criteria or the number of children.

Do I need a new T.D.59 if I change employer?

Yes. The declaration is addressed to a particular employer and describes the year as you expect it. A new employer, and equally a raise, a new child or the start or end of an exemption, makes the old one wrong, and the fix is a fresh form.

Sources

What next

Cyprus tax calculatorCheck what the deductions on the form are worth before you hand it in.Fill in T.D.59 from the calculatorThe form page puts the calculator’s figures on the lines of the form and gives you a filled PDF for the employer.The 2026 reform for individualsWhere the new deduction lines on the form come from.The 50% exemption, article 8(23A)The largest of the three exemptions this form can carry.

This is a description of a public procedure, not advice on your own affairs. Where your case has a wrinkle, the Tax Department’s district office answers on it directly.