On 19th of December 2019, an amendment of Article 14 of the Income Tax Law of 2002 was published in the Official Gazette of the Republic of Cyprus. The amendment increases the limit of allowances from 1/6th to 1/5th of an individual's taxable income.
According to the amendment, the deduction for premiums and contributions has been set to a maximum of 1/5th of the individual's taxable income.
Premiums and contributions which are deducted from income for income tax purposes for individuals include the following:
- social insurance;
- national health system;
- medical fund (maximum 1.5% of remuneration);
- pension and approved provident fund (maximum 10% of remuneration); and
- life insurance (maximum 7% of the insured amount)
The change takes effect as of 1st of January 2019.
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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.