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
