# income tax in cyprus



## Higgi (Mar 18, 2009)

Hi guys, could anyone shed some light on the income tax details for me please. I understand that there is a sliding tax scale and you dont pay any tax on income up to 17K from this info.
The tax rates for natural persons are:

first €17 144 – 0% 
€17 144 – €25 716 – 20% 
€25 716 – €34 288 – 25% 
over €34 288 – 30% 

Now as I understand this, if you are earning say 24K, you would only pay 20% tax on the 7K over the first 17K or is it on the whole of that amount? Like wise if earning 30K, you would pay nothing on the first 17, then 20% from the 8K between 17 & 25K, then 25% on anything over this amount. Or would it simply be paying 25% tax on the whole of that amount.

Would be grateful if someone could clarify this for me. 
Many thanks.


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## Veronica (Apr 5, 2008)

Higgi said:


> Hi guys, could anyone shed some light on the income tax details for me please. I understand that there is a sliding tax scale and you dont pay any tax on income up to 17K from this info.
> The tax rates for natural persons are:
> 
> first €17 144 – 0%
> ...


My understanging of it is this.
The first 17K is free of tax. Any taxes are payable on earnings over that. 
So no matter how much you earn you don't pay tax on the first 17K

Veronica


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## BabsM (May 24, 2008)

What Veronica says is how I understand it too. 

What I don't understand is how the 5% on an overseas pension works. The lady in the Larnaca Tax Office was trying to explain it but I am not sure that I understand! Can you really not give any details or proof of your pension and just pay 5% on the whole pension or is it 5% on any amount over the €17k ?

Don't forget, if you are registered as a tax payer in Cyprus (or should be) for 2008 then your tax return needs to be submitted by 30th April. The Government is having a well publicised clamp-down on tax evaders and ignorance is not accepted as a defence! There are fines for late delivery or incomplete delivery of the tax return!


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## AnnieG (Feb 25, 2009)

Hi can anyone tell me if this is the case with married couples? Is each person dealt with separately or are their joint income taken into effect to calculate how much income tax is payable? For instance if the husband earns say 10,000 euros a year and the wife earns the same would they pay any tax at all or would they be taxed on their joint income - ie 20,000 euros??


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## Veronica (Apr 5, 2008)

AnnieG said:


> Hi can anyone tell me if this is the case with married couples? Is each person dealt with separately or are their joint income taken into effect to calculate how much income tax is payable? For instance if the husband earns say 10,000 euros a year and the wife earns the same would they pay any tax at all or would they be taxed on their joint income - ie 20,000 euros??


Each person is taxed individually.


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## AnnieG (Feb 25, 2009)

Veronica said:


> Each person is taxed individually.


Thanks Veronica - that's very useful to know!


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## chrisgarner (Dec 1, 2008)

*income tax.*



AnnieG said:


> Thanks Veronica - that's very useful to know![/QU
> 
> The Cyprus Inland revenue website quotes the tax rates for individuals for 2008 increased to,
> 0 - 19,500 euros zero tax
> ...


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## Higgi (Mar 18, 2009)

Thanks for all your input, I am assuming if employed you are taxed on your monthly salary as per the U.K paye system.


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