IR63: The Cyprus Employer Certificate Explained

The IR63 — officially the Employer's Certificate of Emoluments — is the year-end statement every Cyprus employer must issue to each employee. It summarises annual gross pay, employer and employee contributions, and tax withheld under PAYE. Employees then use the IR63 to complete their personal income tax return (the TD1).

When must the IR63 be issued?

Employers must provide the IR63 to each employee by 28 February following the tax year end. The equivalent data is also filed with the Tax Department via the electronic employer return (TD7 / TD63A).

What the IR63 contains

• Employee name, tax identification number and social insurance number
• Total gross emoluments (salary, bonuses, benefits in kind)
• Social Insurance and GHS contributions withheld
• PAYE income tax withheld
• Any tax-exempt allowances applied during the year (e.g. 20% / 50% expatriate exemption)

How it links to the TD1

The IR63 figures pre-populate a resident individual's TD1. Discrepancies between the IR63 and payslips are one of the most common reasons for tax assessments — reconcile monthly, not at year-end.

Common mistakes we see

• Benefits in kind (company car, housing, private medical) omitted from gross
• Expatriate exemptions applied without checking eligibility every year
• 13th salary and bonuses reported in the wrong tax year

Need a hand with your Cyprus payroll year-end? Try our salary calculator or talk to our team.