Increase of the limit for certain allowances for individuals from one-sixth 1/6 to one-fifth 1/5

On 19 December 2019, an amending Income Tax Law (ITL) was published in the Cyprus Official Gazette, providing for an increase to the annual limit for certain allowances which are deductible from an individual’s taxable income.

The limit of the allowances provided for in Article 14 of the ITL is increased from one-sixth 1/6^th to one-fifth 1/5^th of an individual’s taxable income before such allowances. These include contributions to:

• Social Insurance Fund;
• Approved Pension and Provident Funds;
• General Healthcare System;
• Life insurance policies;
• Medical and other approved funds

Please contact us to discuss how the above amendment affects you and your business.