Cyprus Mail

Some widow’s and widower’s pensions to be taxed

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WIDOW’S and widower’s pensions will from now on count toward a recipient’s total taxable income, under a law passed yesterday.

Previously, pensions granted to widows and widowers through social insurance or under any pension scheme had been exempted from income tax.

Until now, the stipend was the only non-lump sum pension that was tax-free. The pension was not factored into calculating a recipient’s annual income.

That has now changed, and where a widow’s annual income exceeds the taxable threshold of €19,500 the total income will be taxed accordingly.

The move is part of a broader government austerity drive.

For example, a woman with no income other than a €1,200 widow’s pension a month has total annual income of €15,600, and therefore pays no income tax.

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