How will we pay for the NHS?

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memory man
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How will we pay for the NHS?

Post by memory man »

As from March 1 2019, citizens will start paying 1.7% of their monthly salary to the NHS. How will this amount be deducted from our income?

The NHS will get underway on June 1 2019 (first phase) and is expected to be fully operable by June 1 2020.

During the first phase, citizens will be able to access primary-care services such as doctor visits, buying medicine, lab and other examinations. From June 1 2020, they will be able to access all healthcare services.

Citizens, though, will start paying on March 1 2019, in order to cover the operational costs needed for the first phase to begin.

Public and private employees, pensioners, state officials and rentiers will contribute 1.7% of their monthly income, while self-employed persons will have to pay 2.55%. Employers will contribute 1.85% on each employee’s salary, towards her/his healthcare. Also, the State will contribute 1.65% of the income of each employee/pensioner.

This means that, for example, an employee with a monthly gross income of €1,000 will contribute €17 each month to the NHS. Her employer will add €18.50 and the State €16.50.

These amounts will apply until March 1, 2020, as after they will increase to cover the cost of a fully-operational NHS.

From March 1, 2020, public and private employees, pensioners, state officials and rentiers will contribute 2.65% of their monthly salary. Self-employed persons will have to pay 4% and employers will contribute 2.9% on each employee’s income, towards her/his healthcare. Also, the State will add 4.55% on the income of each employee/pensioner.

The contributions will be collected via three state mechanisms. The Social Insurance Fund will withhold the amount each month for private employees, pensioners and self-employed persons.

For state officials, public sector employees and pensioners the amount will be withheld by the Treasury of the Republic.

The contributions of rentiers and other public officials (i.e. mayors) will be under the jurisdiction of the Tax Department.

According to the regulations, for private employees, self-employed persons and pensioners who receive their pensions from the Social Insurance Fund, the amount will be withheld automatically from their salary, in the same way that their contributions to the Social Insurance Fund are withheld. Through the same process, employers will add their contribution for their employees.

These regulations also cover employees who declare multiple employers (i.e. maids) or employees who have other sources of revenue besides their main salary.

Pensioners who receive their pensions from other funds will have the amount withheld by those funds.

The Tax Department will handle the contributions of rentiers and other public officials.

All contributions will end up to the State’s Health Insurance Fund and will make up NHS’s budget.


https://in-cyprus.com/news/local/how-wi ... r-the-nhs/
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jeba
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Re: How will we pay for the NHS?

Post by jeba »

memory man wrote: Thu Oct 11, 2018 7:50 am As from March 1 2019, citizens will start paying 1.7% of their monthly salary to the NHS.
Citizens only? Not all residents?
What about those with an income below the tax threshold who therefore aren´t registered with the tax departement?
What about those with foreign income?
What about those with health insurance who want to keep it?

memory man wrote: Thu Oct 11, 2018 7:50 amFrom June 1 2020, they will be able to access all healthcare services.
Surely this should read "...to access all public healthcare services"?
trevnhil
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Re: How will we pay for the NHS?

Post by trevnhil »

Jeba, Re ' What about those with an income below the tax threshold who therefore aren´t registered with the tax departement? '

If you live in Cyprus you should be registered with the Tax Authorities..
Trev..
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Mrblobby
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Re: How will we pay for the NHS?

Post by Mrblobby »

Clearly the article is written for the information of Cypriots .

I am sure us non locals will hear how much we will pay in due course .
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Lincoln
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Re: How will we pay for the NHS?

Post by Lincoln »

Jebba,

we pay no tax as we are below the tax threshold. However we are registered with the TAX authority and have the tax form returns done each year.
All things are possible
trevnhil
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Re: How will we pay for the NHS?

Post by trevnhil »

Exactly the same here Lincoln.. That is the Law... How can the tax people KNOW anyone is below the allowance, if they don't register and fill in the forms ??
Trev..
jeba
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Re: How will we pay for the NHS?

Post by jeba »

trevnhil wrote: Thu Oct 11, 2018 10:26 am Exactly the same here Lincoln.. That is the Law... How can the tax people KNOW anyone is below the allowance, if they don't register and fill in the forms ??
I´ve asked the tax departement in writing whether I need to register and they never bothered to answer. When I asked a consulting company (eltoma-global.com) I received the following answer: "...As non-tax resident of Cyprus you don’t need to get TIC, prepare and file a tax return. Cyprus will tax you only on Cyprus sourced profit..."
trevnhil
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Re: How will we pay for the NHS?

Post by trevnhil »

How are you a non tax resident ?? Do you not live here more than half a year..??
Trev..
jeba
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Re: How will we pay for the NHS?

Post by jeba »

trevnhil wrote: Thu Oct 11, 2018 8:40 pm How are you a non tax resident ?? Do you not live here more than half a year..??
With the introduction of “non-domicile” or “non-dom” rules, a Cyprus tax resident individual who is not domiciled in Cyprus will effectively not be subject to SDC in Cyprus on any interest, rents or dividends (whether actual or deemed) regardless of whether such income is derived from sources within Cyprus and regardless of whether such income is remitted to a bank account or economically used in Cyprus. It is noted that no tax is imposed on individuals under the Income Tax Law in respect of interest and dividend income.
source: https://webforms.ey.com/gl/en/services/ ... iled-rules

I´ll only become tax resident once I´ll have lived in Cyprus for 17 years.
trevnhil
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Re: How will we pay for the NHS?

Post by trevnhil »

All I can say in answer, is that the tax people here required me to register for tax, as soon as i had been living here for more than 183 days in a tax year.
I think others may be in the same situation as myself..
If the rules are different for you then although I do not understand.... So be it.. End of story..
Trev..
jeba
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Re: How will we pay for the NHS?

Post by jeba »

trevnhil wrote: Thu Oct 11, 2018 10:18 pm All I can say in answer, is that the tax people here required me to register for tax, as soon as i had been living here for more than 183 days in a tax year.
You might have come to Cyprus before the change in tax law in 2015 and you might want to check whether you qualify for non-dom status under the new law.
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Mrblobby
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Re: How will we pay for the NHS?

Post by Mrblobby »

The way I read the link Jeba provided only refers to defence tax .

“An individual is considered to be a resident for tax purposes of Cyprus if he/she is physically present in Cyprus for a period or periods exceeding in aggregate 183 days during the calendar year. The SDC law is amended so that an individual will now be subject to SDC if he/she is both a resident for tax purposes of Cyprus and is also considered to be domiciled in Cyprus.”
jeba
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Re: How will we pay for the NHS?

Post by jeba »

Mrblobby wrote: Thu Oct 11, 2018 11:55 pm The way I read the link Jeba provided only refers to defence tax .

“An individual is considered to be a resident for tax purposes of Cyprus if he/she is physically present in Cyprus for a period or periods exceeding in aggregate 183 days during the calendar year. The SDC law is amended so that an individual will now be subject to SDC if he/she is both a resident for tax purposes of Cyprus and is also considered to be domiciled in Cyprus.”
That may be correct but certain types of income are not subject to income tax (https://www.pwc.com.cy/en/publications/ ... nglish.pdf see page 3).
trevnhil
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Re: How will we pay for the NHS?

Post by trevnhil »

Just for clarification, as Mr Blobby mentions, we no longer pay Defence tax here..
Trev..
jeba
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Re: How will we pay for the NHS?

Post by jeba »

Hudswell wrote: Fri Oct 12, 2018 9:36 am
trevnhil wrote: Thu Oct 11, 2018 10:18 pm All I can say in answer, is that the tax people here required me to register for tax, as soon as i had been living here for more than 183 days in a tax year.
I think others may be in the same situation as myself..
If the rules are different for you then although I do not understand.... So be it.. End of story..
I am sure you are correct Trev, despite the "lethargic" attitude of the tax office in regard to those under the tax threshold, as a "Tax Resident" in Cyprus, ie spending over 183 days in the ROC, you should be registered for tax, and have a TIC, even if you don't pay it! A regulation I would imagine applies to (at least) all EU citizens living here.
That´s not correct. According to the consulting company I asked exactly that question you don´t need to apply for a TIC. At least not as a non-dom resident without income tax liability.
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Mrblobby
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Re: How will we pay for the NHS?

Post by Mrblobby »

For me and the wife it seamed we had to get registered at the Cyprus tax office .

You have to let the UK tax office know if you leave the UK to live in another country with form P85 .

https://www.gov.uk/tax-right-retire-abroad-return-to-uk

The uk tax office will then send you a dt/ individual form which has to be signed and returned by the Cyprus tax office . And so you get your TIC number .

Our pensions are below the tax limit , but we still fill in our tax forms every year (now taxisnet) .
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jeba
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Re: How will we pay for the NHS?

Post by jeba »

Hudswell wrote: Fri Oct 12, 2018 12:41 pm "An individual is tax resident in Cyprus if (s)he spends in Cyprus more than 183 days in any one calendar year. Days in and out of Cyprus are calculated as follows:
• the day of departure from Cyprus counts as a day of residence outside Cyprus
• the day of arrival in Cyprus counts as a day of residence in Cyprus
• arrival and departure from Cyprus in the same day counts as one day
of residence in Cyprus
• departure and arrival in Cyprus in the same day counts as one day of
residence outside Cyprus
Foreign taxes paid can be credited against the personal income tax liability."

From your PWC link Jeba, seems pretty straight forward to me. The interesting thing as someone who is below UK state retirement age, and therefore not eligible for State Care in Cyprus, under the new NHS scheme, can I elect to pay the "percentage" of my income to the Cypruot Government rather than pay for private? Something to consider.
Of course, it is straightforward. But it doesn't tell you whether you need to apply for a TIC. And the part you quoted doesn't even mention non-dom status. Things might also depend on your home country when it comes to the NHS. E. g. as a German pensioner I have mandatory health insurance from Germany which covers me within the EU. So I'm not interested in joining the NHS.
trevnhil
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Re: How will we pay for the NHS?

Post by trevnhil »

And I would further suggest that the second opinion is from the Tax office.. You can call in person to see someone..
Trev..
jeba
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Re: How will we pay for the NHS?

Post by jeba »

Hudswell wrote: Fri Oct 12, 2018 7:04 pm As do UK state pensioned expats, they are entitled to access to the current Cypriot health care system, if you have access to private health care paid for by your Government, then happy days..UK expats will move onto the Cypriot NHS system, the question is how they will be paid for. If you are a tax resident in Cyprus, ie you reside here for more than 183 days, you should apply for a TIC, it matters not if your income is subject to subject to tax or not....you should still be registered. And if Nom Dom status is as tenuous in the UK as it is in Germany...I would suggest you get a second opinion.
I don´t understand what you´re talking about. There is no such thing as non-dom status in Germany.
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Mrblobby
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Re: How will we pay for the NHS?

Post by Mrblobby »

jeba wrote: Fri Oct 12, 2018 5:16 pm Things might also depend on your home country when it comes to the NHS. E. g. as a German pensioner I have mandatory health insurance from Germany which covers me within the EU. So I'm not interested in joining the NHS.
If you are not interested in joining the NHS , why bother posting on an NHS thread ?
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