Cyprus:
Personal Tax – Allowable Deductions For Life And Private Medical Insurance Premiums, Contributions To Social Insurance, Pension And Provident Funds, And, Contributions To GHS
27 January 2020
Elias Neocleous & Co LLC
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As per the Tax Department's announcement on 07 January 2020,
according to the amendment law N173(I)/2019 as approved by the
Parliament and with effect from 19 December 2019, the combined
Personal Tax allowable deductions limit for the above listed
payments is increased to 1/5 of the net
taxable income* of the individual.
Note that a tax deduction for these amounts is, in certain
cases, subject to further conditions (for example life insurance
premiums are subject to a maximum of 7% of the insured amount).
The above amendment applies from the tax year 2019.
*Net Taxable Income: is the Gross Income less any deductible
expenses and/or exemptions, before the personal allowances
Example of Net Taxable Income calculation:
|
|
Gross Income
|
50,000
|
Exemptions
|
(8,550)
|
Deductible expenses
|
(500)
|
Net Taxable Income*
|
40,950
|
|
|
Personal Tax Allowance
(limited to 1/5 of Net Taxable Income)
|
8,190
|
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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