Cyprus

Individual - Sample personal income tax calculation

Last reviewed - 05 February 2020

Example of personal tax computation for 2019

EUR
Salary (EUR 5,885 monthly) 70,620
Rent receivable (from buildings) 5,000
Interest receivable 700
Dividend income 600
Social insurance contributions 4,243
Life insurance premiums 8,500
Insured sum 100,000
Provident fund contributions 3,000
Donations to approved charities (with receipts) 300

Taxable income computation

EUR EUR
Salary 70,620
Rent receivable 5,000
Interest receivable (exempt) 0
Dividends receivable (exempt) 0
Total income 75,620
 
Less: Deductions:
Donations (with receipts) 300
20% of rent income 1,000
Total deductions 1,300
 
Net total income 74,320
 
Less: Contributions and premiums:

Social insurance contributions

4,243

Provident fund contributions (EUR 3,000 < 10% of EUR 70,620)

3,000

Life insurance premiums (restricted to 7% of the insured sum; 7% @ EUR 100,000 = EUR 7,000)

7,000
Total social insurance contributions, provident fund contributions, and life insurance premiums are restricted to 1/5 of net total income (EUR 14,243 restricted to 1/5 of 74,320 - no restriction) 14,243

 

Taxable income 60,077

 

 Tax payable computation

EUR EUR
Income tax payable:
First EUR 19,500 @ 0% 0
Next EUR 8,500 @ 20% 1,700
Next EUR 8,300 @ 25% 2,075
Next EUR 23,700 @ 30% 7,110
Remaining EUR 77 @ 35% 27
Total income tax payable 10,912
 
Special Defence Contribution (SDC)*:
Dividends receivable (EUR 600 @ 17%) 102
Interest receivable (EUR 700 @ 30%) 210
Rent receivable (EUR 5,000 @ 2.25%) 112
Total SDC 424
 
Social insurance contributions 4,243
 
Total tax payable 15,579

* See Special Defence Contribution (SDC) in the Taxes on personal income section. The individual in this example is both Cyprus tax resident and Cyprus domiciled for the purposes of the SDC.