Special Contribution

As from 1^st january, special contribution is abolished

Individual and pensioners working in Cyprus have the responsibility to pay taxes according to their monthly special.

Private Sector

• Should pay this tax refers to private sector employees, self-employed persons and pensioners.
• And above any month if their income exceeds 1,500 euros (excluding the first 13 month additional salary calculation), which is obliged to pay a minimum tax of € 10.
• For employees and pensioners, the tax applies to Cyprus acquired salary, and the need to pay monthly.
• For the employee, the more taxes assessed his employer (50%) , and this tax does not apply to retirement subsidies, revenue approved pension funds, qualified for reimbursement of fees and operating expenses vessels members.
• For the self-employed, this tax applies to any business in Cyprus, and the need to pay provisional tax installments twice a year.
• Private sector employees are not required to pay the following fees:
  1. Retirement bonus
  2. Compensation pension funds
  3. Hired by foreign governments or international organizations foreigner salarie
  4. Salaries of non-citizens of the Republic of foreign diplomats / consular representatives
  5. When the crew of a Cyprus ship salary
  6. To make up for the cost of the employer’s business and allowances

Public Sector

• Should pay this tax refers to public sector employees and pensioners.
• Minimum 10 euros of tax does not apply to individual public sector .
• For within the scope of their high office as an employee, the special tax rates were 3%, 3.5% and 4% three levels.

Since January 1, 2014 to December 31, 2016, related to the tax bands and the applicable tax rate in the following table.