GESY Contributions

Last activity 08 April 2020 by Toon

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ToonCyprus Expert31 March 2020 05:27:52

9838

Salary deductions to support phase 2 of Gesy will be reduced from April until the end of June as part of the emergency package to deal with the coronavirus, Finance Minister Constatinos Petrides said on Monday.

For March, an employee will be deducted 2.65 per cent as previously agreed, with employers contributing 2.90 per cent. The self-employed are among the highest contributors, as their payment will increase from 2.55 per cent to 4 per cent. Meanwhile the state, will pay 4.7 per cent.

But from April, the rates will be slashed across the board for three months (until June 30). Employees, pensioners, persons holding any office and income will be charged a rate of 1.7 per cent, self-employed individuals 2.55 per cent, employers and the state 1.85 per cent. The state will also pay a fixed fund at 1.65 per cent.

In July, the rates will return to those announced in March.

Phase two of Gesy is rolling out in about three months, on June 1, but payments towards it are being made in advance.

The second phase of the public health service will include inpatient care which will be substantially more costly and burdensome than the outpatient care of phase 1, reflecting the increased contribution from earners

source https://cyprus-mail.com/2020/03/30/incr … onth-only/

Hawkeye65Member07 April 2020 18:17:12

With regards to GESY payments.

If I moved to Cyprus, rented or bought. Property, got an MEU1 but still work in UK I would be classed as a UK Tax payer. (By virtue of working for a UK company and also perhaps spending 183 days in the UK)

So in that scenario I would have to fill out a Cyprus Tax return, but should be exempt from the GESY patents (as I have no Cyprus tax liability due to the UK Double Taxation Agreement)

Does that sound correct.

CynicUK / Netherlands Expert07 April 2020 19:13:00

7633

Hi again.

Where you are assessed for tax in the EU is decided by where you are deemed as being resident. I suspect that if you have a MEU1, then you have registered as being resident/working in Cyprus and would be assessed as such by the Cyprus tax authorities. It follows that if you spend 183 days in the UK, then you can't be tax resident in Cyprus (and have a MEU1).

Double taxation agreements apply to world income earned and assessed in one country while you live in the other; normally, social taxes fall outside the scope of such agreements.

Hope this helps.

Cynic
Expat Team

ToonCyprus Expert08 April 2020 05:13:30

9838

Once you are resident (after 90 days you are obliged to register for the MEU1 and MUST have healthcare cover NB the current EHIC will not be accepted for the MEU1 application and is likely to disappear after end of December 2020, besides it is only valid for tourists for upto 90 days for emergency treatment only as a visitor) if you have private healthcare then that would be acceptable.

You will still be required to register with Taxisnet and then complete an annual online tax return... (everyone is ) declaring ALL your income no matter where you earn it and then mitigate your tax payments in UK by applying here for the DT agreement and that must be appiled for here with all your personal detials, incomes etc etc and a payment of €80 per person and a wait of at least 6 weeks until such time as you get the OK for DT tax exemption from HMRC

I suggest you speak to a tax consultant here as I think you will still be subject to GESY payments at the rate of 2.65% (2020) of declared taxable income in your tax return....

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