Special Contribution Tax
Individuals who are working in Cyprus and Pensioners are liable to pay the Special Contribution Tax in Cyprus in accordance with their monthly emoluments.
TAX RATES FOR THE YEARS 2014 & 2015
|Gross Monthly Emoluments||Public Sector||Private Sector|
|0 - 1,500||Nil||Nil|
|1,501 - 2,500||2.5%||2.5%|
|2,500 - 3,500||3%||3%|
- Subject to this tax are Employees, Self-Employed Individuals and Pensioners of the Private Sector
- The above persons are obliged to pay a minimum tax of €10 in case their monthly emoluments exceed €1,500 in any month (excluding the 13th salary which is calculated as a separate month).
- In the case of Employees and Pensioners the Tax applies to emoluments received from Cyprus sources and it is payable on a monthly basis.
- In the case of Employees the above tax is shared (50%) with their employer and the Tax does not apply on retirement gratuities, payments from approved provident funds, remuneration of the crew of qualifying ships and on reimbursements of business expenses.
- In the case of Self-Employed Individuals the Tax applies to any business carried on in Cyprus and is payable twice a year together with the temporary tax installments.
- Subject to this tax are both Employees and Pensioners of the Public Sector.
- The minimum tax of €10 does not apply for Public Sector Individuals.
- The Special Contribution Rate becomes 3%, 3,5% and 4% respectively for highly ranked Employees within their respective scale.
The Special Contribution Tax is considered a Tax Allowable Expense and decreases the Annual Taxable Income of the Individuals.