Cyprus Mail

House amends widow’s pension tax

The inland revenue department

The House plenum passed an amendment on Thursday that exempts widow’s pensions from income tax brackets so they can be taxed separately.

As of January 1, 2014, widow pensions had been included in the calculation of beneficiaries’ total income and subject to normal income taxation.

Thursday’s amendment provides for a separate tax on widow pensions – 20 per cent on any amounts exceeding €19.500 per annum – and excludes such pensions from total taxable income, calculated for purposes of income tax.

The only caveat to the rule applies to individuals who receive more than one widow pensions, either through social security or any other retirement plan.

They will see their pensions included in their total income for purposes of income tax calculation.

Under this amendment, low-income pensioners will pay less in taxes than under the previous regime.

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