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SPECIAL CONTRIBUTION (Terminated from 1/1/2017)
Special Contribution of private sector employees, self-employed individuals and private sector pensioners along with government and semi-government employees and pensioners of public sector.
From 1 January 2012 until 31 December 2016 a new legislation was introduced for the payment of special contribution to strengthen public finances. The Special Contribution bands are as follows:
|
For years 2012 – 2013 |
For years 2014 – 2016 |
||
|
Gross monthly emoluments |
Special contribution to Cyprus |
Gross monthly emoluments |
Special contribution to Cyprus |
|
€ |
% |
€ |
% |
|
0 – 2.500 |
0 |
0 – 1.500 |
0 |
|
2.501 – 3.500 |
2,5 |
1.501 – 2.500 |
2,5 |
|
3.501 – 4.500 |
3 |
2.501 – 3.500 |
3 |
|
4.501 and above |
3,5 |
3.501 and above |
3,5 |
Notes:
• The recipient of the remuneration is liable for half the Special Contribution and the employer for the other half. While in the case of government and semi-government employees and pensioners of public sector they are liable for the whole amount of the contribution. The minimum amount of contribution is €10.
• For employees the Special Contribution should be settled through withholding from the employer.
• For private sector pensioners the Special Contribution should be settled via self assessment.
• For self-employed individuals the Special Contribution should be settled via the provisional Cyprus tax system.
• The Special Contribution is deductible for Income Tax purposes both for the individuals and for the employer.
• For public officials who are in the highest tier of their scale all rates are differentiated by a 0.5% upwards increase.
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For more information please contact
Email: info@pkf-nic.com
Last update: March 2020
The authors expressly disclaim all and any liability and responsibility to any person, entity or corporation who acts or fails to act as a consequence of any reliance upon the whole or any part of the contents of this publication.
Accordingly no person, entity or corporation should act or rely upon any matter or information as contained or implied within this publication without first obtaining advice from an appropriately qualified professional person or firm of advisors, and ensuring that such advice specifically relates to their particular circumstances.
PKF Cyprus firms are member firms of the PKF International Limited network of legally independent firms and do not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms.
