Cyprus Tax Tables 2020 - Tax Rates and Thresholds in Cyprus

This page contains the tax table information used for the calculation of tax and payroll deductions in Cyprus in 2020. These tax tables are used for the tax and payroll calculators published on iCalculator™ CY, these tools are provided for your free use on our website. If you would like additional tax table information added to the tax calculators for Cyprus or would like to add to or suggest amendments to the information herein then please contact us.

Cyprus Personal Income Tax Tables in 2020

The Income tax rates and personal allowances in Cyprus are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the Cyprus Tax Calculator 2020.

Cyprus Social Security Rates in 2020

Social security contributions in Cyprus are a mandatory aspect of the nation's welfare system, providing a range of benefits such as pensions, sickness and maternity benefits, unemployment and injury benefits, and more. Both employers and employees are required to make contributions based on the employees' earnings, ensuring the sustainability and functionality of the social insurance fund.

Employer Contributions

Employers in Cyprus are obligated to contribute to the Social Security Fund on behalf of their employees. The rate is a percentage of the employees' gross salary and is designed to cover various social insurance benefits. Employers must ensure timely and accurate payments to comply with their legal obligations and to secure their employees' entitlement to social insurance benefits.

Employee Contributions

Employees also contribute to the Social Security Fund through a deduction from their gross salary. This deduction is managed by the employer and is remitted to the social insurance authorities along with the employer's contribution. Employee contributions ensure that workers invest in their own social security, providing a foundation for future benefits.

The actual percentage rates for both employers and employees are determined by the Cypriot government and may be subject to changes over time. These contributions are generally capped at a maximum level of insurable earnings, which is reviewed and potentially adjusted annually.

Self-Employed Contributions

For self-employed individuals, the social security contribution rate is set at a percentage of their declared earnings, with minimum and maximum thresholds applying to the level of their insurable income. As with employers and employees, self-employed individuals must regularly contribute to the Social Security Fund to maintain their eligibility for benefits.

Additional Contributions

Beyond the basic social security contributions, there are additional mandatory contributions in Cyprus, such as for the Redundancy Fund, the Industrial Training Fund, the Social Cohesion Fund, and the Holiday Fund for certain sectors. These contributions are typically smaller percentages compared to the main social security rates and are often shared between the employer and the employee.

In summary, while specific rates are not provided in this overview, it is essential to recognize the shared responsibility between employers and employees in financing Cyprus's social security system. Accurate and up-to-date knowledge of the precise rates is crucial for both compliance and financial planning.

Cyprus VAT Rates in Cyprus

VAT rates for Cyprus are reviewed annually, you can use the VAT Calculator to calculate VAT due in Cyprus or use the Reverse VAT Calculator to calculate the net cost of goods/services after deducting VAT.

Historic Tax Tables supported for Cyprus

The following tax tables are supported by iCalculator™ CY as part of the suite of free tax tools we provide for Cyprus.