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Comprehensive Guide To 2026 Tax Reform And Income Tax Deductions

The Tax Directorate has unveiled a comprehensive guide detailing the 2026 Tax Reform, income tax provisions, and entitlements to tax deductions. Published on Friday, the guide is available on the official website of the Tax Directorate under a dedicated section for Tax Reform 2026. Access the information directly via the Tax Reform 2026 page on the Ministry of Finance website at www.mof.gov.cy/tax.

Key Elements Of The Guide

The publication offers detailed insights and resources, including:

  • An editable PDF version of the Tax Deductions Claim Form (Τ.Φ.59) for the 2026 fiscal year;
  • An explanatory manual outlining the application of the tax reform for individual taxpayers residing in Cyprus starting from 2026;
  • A section featuring Frequently Asked Questions and corresponding answers, with updates to be provided as needed;
  • Practical examples demonstrating the application of the tax reform for individual taxpayers, with additional scenarios to be added over time.

Expert Insight And Upcoming Tools

Tax Officer Sotiris Markidis, in an interview with the publication “F,” underscored the guide’s role in helping taxpayers navigate the new legal framework set to take effect on January 1. Mr. Markidis also announced the imminent launch of an Income Tax Calculation Tool. This innovative tool will allow users to enter their income across various categories as well as applicable deductions (including allowances and exemptions). Based on one’s personal status—whether single, part of a family, or a single-parent household—the tool will display the income tax amounts before and after the reform, clearly highlighting the tax benefits inherited from the new structure.

Action Required From Employers

Markidis advised employers, particularly those whose employees are impacted by the revised tax policies and new personal deductions, to review the manual, FAQs, and provided examples carefully. He recommended that they complete the Tax Deductions Claim Form (Τ.Φ.59) for the 2026 fiscal year at the earliest opportunity and deliver it to their employers to ensure the prompt implementation of the updated income tax withholding parameters.

Cyprus Ranks Among EU Leaders In Tertiary-Educated ICT Workforce

High Educational Attainment Sets Cyprus Apart

Recent data from Eurostat showed that Cyprus is expected to rank among the leading European countries for tertiary-educated ICT professionals in 2025. According to the figures, 96.4% of ICT professionals in Cyprus are projected to hold tertiary education qualifications, placing the country among the highest-ranked members of the European Union.

Gender Disparity Remains A Critical Challenge

Despite the high level of educational attainment, the ICT workforce in Cyprus continues to show a significant gender imbalance. Men are projected to account for 85.1% of ICT employees in 2025, while women are expected to represent 14.9% of the sector. In 2024, the split stood at 70.9% for men and 29.1% for women. The figures highlighted a widening gender gap within the country’s ICT workforce.

European Union Trends And Comparative Analysis

Across the European Union, the number of ICT professionals is projected to increase to 3.4 million in 2025 from 3.2 million in 2024, representing annual growth of 5.1%. Men are expected to account for 83.4% of ICT employment across the bloc, equivalent to approximately 2.8 million workers, while women are projected to represent 16.6%.

National Performance Variability In Gender Representation

Countries within the EU show a varied landscape: the highest percentages of male ICT professionals are reported in the Czech Republic (92.9%), Slovenia (89.1%), Latvia (89.0%), Lithuania (88.9%), and Slovakia (88.4%). On the contrary, nations such as Denmark (30.0%), Sweden (29.8%), Romania (28.6%), Bulgaria (25.6%), and Croatia (25.2%) lead in female participation in the ICT arena.

Educational Background Across The European ICT Sector

Eurostat data also showed that most ICT professionals across the EU hold tertiary education qualifications. By 2025, 74.8% of ICT workers in the bloc are projected to have university-level education, while 25.2% are expected to hold secondary or post-secondary qualifications. Denmark recorded the highest share of tertiary-educated ICT professionals at 97.7%, followed by France at 96.6% and Cyprus at 96.4%. Other countries with high levels of tertiary-educated ICT workers included Ireland at 92.3%, Bulgaria at 91.1%, and Croatia at 90.9%. At the lower end of the ranking, Italy recorded 69.2%, while Portugal stood at 58.8%.

Conclusion

The data perfectly encapsulates the dual narrative in the ICT sector: while countries like Cyprus and Denmark achieve remarkable educational standards among ICT workers, persistent gender disparities remind us that diversity remains an ongoing challenge. As the ICT landscape continues to evolve, strategic policy formation and corporate governance will be pivotal in balancing excellence with inclusivity.

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