Navigation path


Generic Tax Name Social security contribution - Central holiday fund contributions (Employees)
Tax name in the national language Ετησίων Αδειών μετ΄Απολαβών Νόμος
Tax name in English Annual Leave with Pay Law
Member State CY-Cyprus
Tax in force since 1967/08/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

The Annual Holidays with Pay Law (Law 8 of 1967-2005 and Regulations issued thereunder).

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments

The Annual Leave with Pay legislation is administered by the Social Insurance Services of the Ministry of Labor, Welfare and Social Insurance.  The Central Holiday Fund established under this legislation is financed by contributions payable by employers.  The Central Holiday Fund contribution rates are provided under the relevant legislation.

 
Beneficiary





Comments

Beneficiaries are employees for whom contribution have been paid to the Central Holiday Fund by their employers.

 
Geographical Scope

Goverment controlled area of Cyprus.

 
Taxpayers
The base or rate of social security contributions paid by Employees on the income of employees and of blue collar workers Rates are identical
Bases are identical

Comments

Domestic-source income of non-residents is Subject to SSCer
Not Subject to SSCer

Comments

Contributions are payable only on income from employment in Cyprus. Residency is not a critirion for payment of contributions.



Comments

Any employer is obliged to pay contributions to the Central Holiday Fund unless he has been exempted from the obligation to contribute to the Central Holiday Fund. Exceptions from the obligation to pay contributions is provided to employers if they apply a Holiday Scheme with more favourable terms than those provided under the legislation.

 
Tax object and basis of assessment
Employees pay social security contributions for








Comments

Others = Central holiday fund


Base for all contributions listed here above is the same Yes No

As general rule, the income subject to Social Security Contributions of Employees includes























Comments

Income considered Domestic income
Worldwide income
Comments

Income from employment (Earnings).


Benefits in kind

The following benefits in kind are usually (partially or fully) subject to social security contributions paid by Employees












Comments


Comments

Liability for this contribution is based on the gross earnings of the employee up to a maximum amount fixed every year.

The contribution is assessed on gross earnings. That means before the deduction of any taxation, contributions etc. The earnings include the basic salary, the cost of living allowance, commissions, the 13th/14th salary or 53rd/56th week pay, overtime, shift allowance, service allowance and in general any remuneration for the employee's employment.

 
Deductions, Allowances, Credits, Exemptions
Capped contributions No cap
Cap in monetary units:
Cap in % of the tax base:

Reduction

The reduction is
No reduction
A lump-sum amount
In percentage of base:
     
Based on salary
Capped
Comments

Allowances
The basic yearly allowance for an individual amounts to:
The basic yearly allowance for a couple amounts to:
Additional allowance for 1st child
Additional allowance for 2nd child
Additional allowance for 3rd child
Additional allowance for additional child
Additional allowance for old age dependents
Comments

Credits
The basic yearly credit for an individual amounts to:
The basic yearly credit for a couple amounts to:
Additional credit for 1st child
Additional credit for 2nd child
Additional credit for 3rd child
Additional credit for additional child
Additional credit for old age dependents

Social Security Contributions paid by Employees are tax deductible Yes No


Comments

An employer may be exempted from the obligation to pay contributions to the Central Holiday Fund when he provides annual leave with pay to his employees, under more favorable terms that those provided by the Annual Holiday with Pay Law. The employer may apply in order to get an exception from his obligation to contribute to the Central Holiday Fund. In such a case the employer is obliged to pay himself the wages or salary to his employee during the period of his leave.

 
Rate(s) Structure
The following rates apply to Social Security Contributions paid by Employees
Pensions

Health care

Unemployment

Child care

Work-related illnesses and/or accidents

Education leave

Maternity leave

Others

Comments

Special surcharges

There are special surcharges in the form of:
Surcharge 1 : Name:
A lump-sum amount:
A percentage of income:
A tax surcharge:
Comments



Comments

The rate of contribution to the Central Holiday Fund varies according to the length of annual leave, to which the employed person is entitled.

Rate of contribution to the Central Holiday Fund

for employees with a five-day working week

Duration of annual leave

(days)

Rate of contribution

(%)

 

20

21

22-23

24

25

26

27-28

29

30

31

32-33

34

35

36

37-38

39

40

 

8

8.5

9

9.5

10

10.5

11

11.5

12

12.5

13

13.5

14

14.5

15

15.5

16

 
Tax due date

The employer is liable to pay contributions to the Central Holiday Fund by the end of the calendar month which follows the month for which contributions are due. For example, January 2012 contributions must be paid by the 29th of February 2012. If the last day of the month is a Saturday, Sunday or a public holiday, the last day for the payment of contributions is the following day of work.

 
Tax collector

Social Insurance Services of the Ministry of Labour, Welfare and Social Insurance.

 
Special features

 
Economic function







Comments
 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d61111

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 85.58 EUR 0.44
2011 97.05 EUR 0.50
2010 100.89 EUR 0.53
2009 100.40 EUR 0.54
2008 98.50 EUR 0.52
2007 85.60 EUR 0.49
2006 75.00 EUR 0.47
2005 68.30 EUR 0.46
2004 66.50 EUR 0.48
2003 54.20 EUR 0.42
2002 44.40 EUR 0.37
2001 43.60 EUR 0.38
2000 38.30 EUR 0.36

Comments