Example of personal tax computation for 2023
|
EUR |
| Salary (EUR 5,885 monthly) |
70,620 |
| Rent receivable (from buildings) |
5,000 |
| Interest receivable |
700 |
| Dividend income |
600 |
| Social insurance contributions |
5,005 |
| General health system contributions |
2,038 |
| 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 |
5,005 |
|
| General health scheme contributions |
2,038 |
|
| 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, general health scheme contributions, provident fund contributions, and life insurance premiums are restricted to 1/5 of net total income (EUR 17,033 restricted to 1/5 of 74,320) |
|
14,864 |
|
|
|
|
| Taxable income |
|
59,456 |
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 23,156 @ 30% |
6,947 |
|
| Total income tax payable |
|
10,722 |
| |
|
|
| Special Defence Contribution (SDC)*: |
|
|
| Dividends receivable (EUR 600 @ 17%) |
102 |
|
| Interest receivable (EUR 700 @ 30%) (17% as of 1 January 2024) |
210 |
|
| Rent receivable (EUR 5,000 @ 2.25%) |
112 |
|
| Total SDC |
|
424 |
| |
|
|
| Social insurance contributions |
|
5,005 |
| General health system contributions |
|
2,038 |
| |
|
|
| Total tax payable |
|
18,189 |
* 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.
