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Generic Tax Name Social security contribution - Redundancy Fund (Employers)
Tax name in the national language Περί Τερματισμού Απασχολήσεως Νόμος
Tax name in English The Termination of Employment Law
Member State CY-Cyprus
Tax in force since 1968/02/01
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 Termination of Employment Law (Law 24 of 1967-2003 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 Termination of Employment Law is administered by the Social Insurance Services of the Ministry of Labour, Welfare and Social Insurance. The  Redundancy Fund is established under this legislation and is financed by contribution rates is provided under the relevant legislation.

 
Beneficiary





Comments

Beneficiaries are employees who have completed two years of employment to the same employer and their employment is terminated for reasons of redundancy.

 
Geographical Scope

Government Controlled Areas of Cyprus.

 
Taxpayers
The base or rate of social security contributions paid by Employers 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. Recidency is not a critirion for payment of contributions.



Comments

Employers are liable to pay contributions to the Redundancy Fund.

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








Comments

Others = Redundency fund.


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

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























Comments

Income considered Domestic income
Worldwide income
Comments

Benefits in kind

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












Comments


Comments

The Fund is financed entirely by employer's contributions. The rate of contribution is 1.2% on employees earnings up to a maximum amount fixed every year.

 

The earnings are those defined under the Social Insurance legislation and include the basic salary, the cost of living allowance, commissions, the 13th , 14th wage or the 53rd to 56th week, overtimes, and the contributions of the employer to the Central Holiday Fund.

 
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 Employers are tax deductible Yes No


Comments

Not applicable.

 
Rate(s) Structure
The following rates apply to Social Security Contributions paid by Employers
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 Redundancy Fund is 1.2% on employee's earnings and is paid solely by the employer.

 
Tax due date

The employer is liable to pay contributions to the Redundancy 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

Not applicable.

 
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 83.69 EUR 0.43
2011 85.55 EUR 0.44
2010 83.54 EUR 0.44
2009 80.56 EUR 0.44
2008 75.80 EUR 0.40
2007 67.30 EUR 0.39
2006 60.50 EUR 0.38
2005 55.90 EUR 0.37
2004 53.80 EUR 0.39
2003 47.70 EUR 0.37
2002 42.90 EUR 0.36
2001 42.00 EUR 0.36
2000 37.20 EUR 0.35

Comments