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| TAX RATES YEAR 2004 |
| Taxable Income | Tax Rate | Tax Amount | Cumulative Tax |
| 0-£10000 £10000-£15000 £15001-£20000 OVER £20000 |
0% 20% 25% 30% |
- £1000 £1250 |
- £1000 £2250 |
| TAX RATES YEAR 2003 |
| Taxable Income | Tax Rate | Tax Amount | Cumulative Tax |
| 0-£9000 £9001-£12000 £12001-£15000 OVER £15000 |
0% 20% 25% 30% |
- £600 £750 |
- £600 £1350 |
EXEMPTIONS FROM TAX
- All interest income (except where interest derives from the normal
course of a business).
- All dividend income.
- 40% of money deposits with the Housing Finance Corporation (with certain
restrictions).
- Foreign emoluments from a business permanently established abroad for a
total period exceeding 90 days.
- The lower of 20% or £5000 of the total emoluments of a person employed
in the Republic who prior to taking up employment was resident outside the
Republic (the exemption is valid for three years starting 1st January of
the year that follows the year his employment commenced).
- Profit from disposal of shares.
- Rental income from a building under preservation order.
- Widows pension.
- Professional and union subscriptions.
ALLOWABLE EXPENSES
- Life insurance premiums (for policies where the annual premium is
less than 7% of the value of the policy), social insurance contributions,
approved provident fund contributions, General Health Fund contributions,
contributions to pension funds.
- Contributions to charitable causes (if supported by receipts) otherwise
restrictions apply.
- Expenditure on buildings under preservation order up to £180 per sq. m.
- 20% of total rental income to cover property expenses, loan interest and
annual wear and tear allowances.
SOCIAL BENEFITS
- £1500 per annum per child studying at third grade educational
establishments in Cyprus (with certain restrictions) or a university
abroad.
- £1800 per annum to blind persons.
- Child benefit for every dependent child of a family residing in Cyprus
with the following criteria.
|
Benefit £200 |
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SOCIAL INSURANCE CONTRIBUTIONS
| RATES | |
| Employer's contribution Employee's contribution Self employed person's contributions
|
6.30% 6.30% 11.60%
|
| EMPLOYER'S OTHER CONTRIBUTIONS | |
| Social Cohesion fund Redundancy fund Industrial Training Fund Holiday fund |
2% 1.20% 0.50% 8% |
