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Generic Tax Name Social security contribution - Employers' contribution to the Human Resource Development Fund
Tax name in the national language Ο Περί Ανάπτυξης Ανθρώπινου Δυναμικού Νόμος, 1999-2007
Tax name in English Human Resource Development Law, 1999-2007
Member State CY-Cyprus
Tax in force since 1979/05/07
If abolished, date on which the tax ceases to apply
Business version date 2011/01/01
Version date 2011/08/19
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 Human Resource Development Law of 1999 to 2007 [Law No. 125(I)/1999, No. 52(I)/2006 and No. 21(I)/2007].

The Regulations for the Human Resource Development Authority (Levy Payable by Employers) of 1979 to (No.2) of 2008.
 
Who sets
The tax rate is set by



The tax base is set by



The reliefs are set by




Comments

The Human Resource Develepment Fund is financed by levies payable by the employers. The Human Resource Development Fund is Established under the relevant legislation.
 
Beneficiary





Comments
 
Geographical Scope Republic of Cyprus (Government 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
Domestic-source income of non-residents is Subject to SSCer
Not Subject to SSCer

Comments
none

Comments

Every employer in the Republic of Cyprus (Government Controlled Area of Cyprus).

The term "employer" does not include the Government of the Republic and the self-employed persons.
 
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
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

Each employer is obliged to pay to the Human Resource Development Fund a Levy not exceeding 1% (today 0.5%) of the payable remuneration to each of his employees, as it might be specified from time to time. The Human Resource Development Authority of Cyprus, with the approval of the Council of Ministers, specifies by Regulations the method and the date of payment of the Levy.
 
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

The Government of the Republic and the self-employed are exempted from the payment of the Levy.
 
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 current rate that each employer is obliged to pay to the Human Resource Development Fund, is 0.5% of the payable remuneration to each of his employees up to a maximum.
 
Tax due date

The Levy is payable by the employer not later than the end of the calendar month that follows the month in which the remuneration to the employees is due.
 
Tax collector

The Levy is collected by the Social Insurance Services of the Ministry of Labour and Social Insurance and then is forwarded to the Human Resource Development Authority of Cyprus.
 
Special features

The Levy is paid to the Human Resource Development Fund (HRD Fund), which constitutes property of the Human Resource Development Authority of Cyprus (HRDA). The HRD Fund is operated by the HRDA according to the Human Resource Development Law and is used exclusively for achieving the aims of the HRDA. The purpose of the HRDA is the development of the human resources at all levels and in all sectors of employment within the framework and the priorities of the economic and social policy of the Republic.
 
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
2010 26.70 EUR 0.14
2009 26.60 EUR 0.14
2008 24.00 EUR 0.13
2007 21.20 EUR 0.12
2006 18.70 EUR 0.12
2005 17.30 EUR 0.12
2004 16.10 EUR 0.12
2003 14.30 EUR 0.11
2002 13.30 EUR 0.11
2001 12.50 EUR 0.11
2000 11.20 EUR 0.10

Comments