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Generic Tax Name Social security contribution (Employers)
Tax name in the national language Περί Κοινωνικών Ασφαλίσεων Νόμος (ενοποιημένος)
Tax name in English Social Insurance Law (consolidated)
Member State CY-Cyprus
Tax in force since 2010/07/02
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 Social Insurance Law (Law 59(I) /2010 amending and consolidating Law 41/1980) as amended.

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments

Social Security Scheme is administered by the Social Insurance Services of the Ministry of Labour, Welfare and Social Insurance.  It is financed by the employer, the employee and the State. The social insurance contribution is set under the relevant legislation.

 
Beneficiary





Comments


Beneficiaries are insured persons

 
Geographical Scope

Goverment Controlled Area 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

In principle identical rates apply.


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

All gainfully occupied persons. All persons who wish to continue their insurance and cypriots who work in the service of cypriot employers abroad can be voluntarily insured under the Scheme.

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








Comments

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

Insurable earnings are earnings on which contributions are paid and are subject to a maximun amount


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 Employers












Comments


Comments

Employed Persons

The Social Insurance Contributions are based on the Insurable Earnings that include the basic salary, the cost of living allowance, commissions, the 13th and 14th salary or the 53rd/56th week, overtime etc. For the purpose of payment of contribution, the gross amount of earnings i.e. before the deduction of any taxes and contributions is taken into consideration.

 

Self Employed Persons

The insurable earnings of self-employed person's i.e. the earnings on which contributions are calculated, are determined according to the occupation and the time of employment.

For every occupational category there is a minimum amount of insurable earnings. However, the self-employed person has the right to pay contributions on a higher amount of insurable earnings up to the maximum amount of insurable earnings. If the actual earnings of the self-employed person is lower than the minimum amount of his occupational category, he can pay contributions on his actual earnings after providing sufficient evidence.

 

Voluntarily Insured Persons

The rate of contribution of the voluntary contributors is 17.1% from which 13% is payable by the voluntary contributor and 4.1% by the state. The rate of contribution for the persons working abroad in the service of Cypriot employers is 20.2% from which 15.6% is payable by the voluntary contributor and 4.6% by the state.

 
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

Employed Persons

For the employed persons the rate of contribution is 17.9% (6.8% is payable by the employer, 6.8% by the employee and 4.3% by the State).

 

Self Employed Persons

The total contribution for self-employed persons is 16.9% of insurable earnings. From this percentage, 12.6% is payable by the self-employed person and 4.3% by the state.

 

Voluntarily Insured Persons

The rate of contribution of the voluntary contributors is 14.8% from which 11% is payable by the voluntary contributor and 3.8% by the state. The rate of contribution for the persons working abroad in the service of Cypriot employers is 17.9% from which 13.6% is payable by the voluntary contributor and 4.3% by the state.

 
Tax due date

Employed Persons

The employer is liable to pay contributions to the Social Insurance 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.

 

Self Employed Persons

Self-employed persons are liable to pay contributions to the Social Insurance Fund not later than forty days following the quarterly period ending with the end of each of the contribution months March, June, September and December.

 

Voluntarily Insured Persons

Voluntarily insured persons can pay their contributions on a monthly, trimester or yearly basis. In no case contributions can be collected after 12 months from the end of the year for which contributions are due. For example, contributions due for year 2011 must be paid by the end of the year 2012.

 
Tax collector

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

 
Special features

 
Economic function







Comments
 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d611

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 1,320.10 EUR 6.78
2011 1,355.62 EUR 6.93
2010 1,327.38 EUR 6.94
2009 1,253.52 EUR 6.78
2008 1,134.40 EUR 6.03
2007 1,021.20 EUR 5.85
2006 911.90 EUR 5.65
2005 931.20 EUR 6.23
2004 834.80 EUR 6.03
2003 720.30 EUR 5.63
2002 648.90 EUR 5.40
2001 635.80 EUR 5.51
2000 565.70 EUR 5.26

Comments