[Guest]

Hi All and Happy Eastern!

A friend of mine living in Cyprus told me that if you want to work as self-employed in Cyprus it is not your actual earnings that decide on what amount you have to pay SI. Instead the authorities have a "bible" with all occupations and their average salary and that is the amount you have to pay from

My question to anyone who know is what happen if you end up paying to much one year. Will you get it back or transferred to next year or will you just contribute extra to the Cyprus budget?

And how about Tax? The same?

 

[Veronica]

Hi All and Happy Eastern!

A friend of mine living in Cyprus told me that if you want to work as self-employed in Cyprus it is not your actual earnings that decide on what amount you have to pay SI. Instead the authorities have a "bible" with all occupations and their average salary and that is the amount you have to pay from

My question to anyone who know is what happen if you end up paying to much one year. Will you get it back or transferred to next year or will you just contribute extra to the Cyprus budget?

And how about Tax? The same?

That is correct. When we first started our business they were going to put us in a high earnings bracket but our accountant appealled and got us put on the lowest bracket. The silly thing is once you are in a low bracket they don't look into your earnings and put you into a higher one if you earn more than you should.
The lowest earnings they will accept is 800 euors per month.
I don't know if you get back any excess you have paid but as your social fund is made up of what you pay in and therefore any pensions, benefits etc are based on that I would say it isnt worth the hassle you would have trying to get a refund. They don't like giving refunds.
A thing to bear in mind is that part of your contribuition goes into a holdiay fund and you claim that in June of each year. This fund is to ensure that employers don't leave their employees short of money by not payingtheir holiday pay to them. However once again our accountant appealled that as we are self employed and therefore would not be trying to claim holiday pay from an employer so we got an exemption from paying into the holiday fund.

 

[Mattias]

Accountant

Hi Veronica,

how do I find your accountant, or any accountant?


Cheers
Mattias

 

[Veronica]

Hi Veronica,

how do I find your accountant, or any accountant?


Cheers
Mattias

I will ask him if he is accepting new clients and private message you his contact details if he is.

Veronica

 

[zach21uk]

A thing to bear in mind is that part of your contribuition goes into a holdiay fund and you claim that in June of each year. This fund is to ensure that employers don't leave their employees short of money by not payingtheir holiday pay to them. However once again our accountant appealled that as we are self employed and therefore would not be trying to claim holiday pay from an employer so we got an exemption from paying into the holiday fund.

I didn't know this! So part of my social insurance contributions are going into a fund that I am supposed to claim back to pay for my own holidays?

I don't know whether to be amused by this notion or horrified by it!

Do you know how one would claim this back personally (rather than by way of an accountant?).

 

[Veronica]

I didn't know this! So part of my social insurance contributions are going into a fund that I am supposed to claim back to pay for my own holidays?

I don't know whether to be amused by this notion or horrified by it!

Do you know how one would claim this back personally (rather than by way of an accountant?).

If you have an accountant he will get it back for you and try to arrange for you to opt out of it.
If you don't have an accountant (not wise) you will need to try to get the social to see sense but to be honest without a good accountant it wont be easy.

 

[Mattias]

Thanks Veronica!

 

[Baywatch]

If you have an accountant he will get it back for you and try to arrange for you to opt out of it.
If you don't have an accountant (not wise) you will need to try to get the social to see sense but to be honest without a good accountant it wont be easy.

We registered for social ourselves and we don't pay in to the holiday fund. No one asked us when we registered so perhaps it is changed rules now