The Tax Department has launched targeted audits into television and media personalities who maintain an active commercial presence on social media platforms. The investigations focus on advertising payments received for promotional services across Instagram, Facebook, TikTok, and YouTube, covering transactions conducted in both cash and kind.
Scope of the social media audits
The audits form part of broader institutional efforts to combat tax evasion and restore fiscal justice. Tax officials are cross-referencing the commercial activities of these media figures with their official income tax and VAT returns. The objective is to verify that the correct amount of tax is being declared and paid across all tax categories related to digital promotional services.
This digital crackdown follows separate, highly detailed investigations into luxury weddings. In those cases, the Tax Department demanded comprehensive financial records to cross-examine declared versus actual revenues, subsequently imposing heavy back-taxes and penalties wherever undeclared income was identified.
New anti-evasion legislative tools
Backed by ongoing tax reforms, the Tax Department has secured an expanded arsenal of legal instruments designed to suppress tax evasion and enhance compliance.
Key legislative adjustments introduced to broaden the tax base include:
-
Mandatory tax returns: All natural persons aged between 25 and 70 are now legally required to submit an annual tax return, completely irrespective of their total income level. The Council of Ministers retains the exclusive authority to exempt specific categories of citizens via official decree.
-
Electronic rent payments: Starting from 1 July 2026, the collection of rental income for properties in Cyprus must be processed exclusively via bank transfer, debit or credit card, or any other recognized electronic payment method.
-
Asset declarations: The Tax Commissioner is now empowered to demand that individual taxpayers submit a comprehensive statement of assets and liabilities covering a six-year period.
-
Banking data access: Financial institutions must supply the Tax Department with detailed data regarding individuals credited with interest. This mandatory reporting includes the taxpayer’s legal name, tax residency, tax identification number, date of birth or incorporation, registered address, total interest credited, and any withholding taxes or levies applied.
-
Business closures: Authorities have introduced a swift enforcement procedure to seal business premises for failing to file tax returns, failing to issue legal receipts, or harboring outstanding tax debts, though taxpayers retain the right to challenge these closures in court.
-
Share freezing: The state can now freeze corporate shares belonging to individuals who owe outstanding tax debts exceeding €100,000.
Audits drive rising state revenues
Data released by the Tax Department indicates that intensive auditing strategies have yielded a significant expansion in public funds over recent years. Total state tax revenues climbed to €8.1 billion in 2025, rising steadily from €7.4 billion in 2024, €6.7 billion in 2023, and €6 billion in 2022.
