Hi All,
I have been trying to find the answer to the above question without success so far for my Taxisnet return. I know Pension lump sums are tax free in both the UK and Cyprus. However, I am not sure about GESY as I don't have an S1. Does anyone have a definitive answer ?
I have tried to contact GESY, but the girl I spoke to was clueless and had no idea. She suggested I contact the VAT or the Social Insurance Office !! I asked if she had a contact number for the later, and she gave me a phone number for Directory Enquires............ As they are one of the least helpful organisations in Cyprus I have not tried. I have attempted to contact the tax office, but nobody answers the phone or responds to emails.
From the research I have done on the internet, the only reference I can find is mention of "Pensions" being liable for GESY (unless you have an S1 of course). I have not been able to find any mention of Pension Lump Sums in relation to GESY specifically.
If anyone knows the correct answers, I would be grateful.
Thanks,
Jason
GESY on Pension Commutations ?
Re: GESY on Pension Commutations ?
Go to the Tax office, speak to someone there and get it from the horses mouth.Jb1960 wrote: ↑Tue Nov 17, 2020 8:30 am Hi All,
I have been trying to find the answer to the above question without success so far for my Taxisnet return. I know Pension lump sums are tax free in both the UK and Cyprus. However, I am not sure about GESY as I don't have an S1. Does anyone have a definitive answer ?
I have tried to contact GESY, but the girl I spoke to was clueless and had no idea. She suggested I contact the VAT or the Social Insurance Office !! I asked if she had a contact number for the later, and she gave me a phone number for Directory Enquires............ As they are one of the least helpful organisations in Cyprus I have not tried. I have attempted to contact the tax office, but nobody answers the phone or responds to emails.
From the research I have done on the internet, the only reference I can find is mention of "Pensions" being liable for GESY (unless you have an S1 of course). I have not been able to find any mention of Pension Lump Sums in relation to GESY specifically.
If anyone knows the correct answers, I would be grateful.
Thanks,
Jason
Re: GESY on Pension Commutations ?
Funny you should mention pension lump sum , my wife got one in 2019 so it has been entered on the 2019 tax form . We just used code 3 exempted and it appears to be acceptable .
However we are on S1 so our Gesy contribution is covered .
The good thing about Taxisnet is you can experiment with different figures to see what effect they have until you are ready to make the final submission .
Sorry it does not cover your question .
However we are on S1 so our Gesy contribution is covered .
The good thing about Taxisnet is you can experiment with different figures to see what effect they have until you are ready to make the final submission .
Sorry it does not cover your question .
Last edited by Mrblobby on Tue Nov 17, 2020 9:33 am, edited 1 time in total.
Re: GESY on Pension Commutations ?
As far as I am aware if you do NOT have an S1 then you will need to pay into Gesy through the tax system..
Trev..
Re: GESY on Pension Commutations ?
Hi,
Thanks for the responses.
I have tried ringing the tax office again and got an answerphone. Left a message and a phone number, but no response. I will try the tax office in person on Thursday if I don't get a response in the interim.
The issue is a lack of an S1 as I don't qualify for one yet. You could put the Pension lump sum in a couple of places on Taxisnet and the S1 will cancel out any GESY charges. If I input, as I don't an S1, it wants to charge me several hundred Euro, but I don't know whether it should be charging me in the first place as the information online is very vague in referring just to "Pensions".
Thanks,
Jason
Thanks for the responses.
I have tried ringing the tax office again and got an answerphone. Left a message and a phone number, but no response. I will try the tax office in person on Thursday if I don't get a response in the interim.
The issue is a lack of an S1 as I don't qualify for one yet. You could put the Pension lump sum in a couple of places on Taxisnet and the S1 will cancel out any GESY charges. If I input, as I don't an S1, it wants to charge me several hundred Euro, but I don't know whether it should be charging me in the first place as the information online is very vague in referring just to "Pensions".
Thanks,
Jason
Re: GESY on Pension Commutations ?
I'd started looking in to that so please let us know if you do get an answer. Husband is retiring in Jan and will get a lump sum, but all info I'm reading only mentions UK State Pension and how to apply for the S1, and hes not state pension age for many yrs yet!
Re: GESY on Pension Commutations ?
Hi Dodo,
I have tried the Paphos Tax Office today and it was a complete waste of time. The tax window by the main entrance was completely shuttered off and only a box for leaving forms was there. The usual tax window by the cashiers office was also inaccessible and completely shuttered. I did notice a sign by one of entrances in another block that visits were by appointment only. I have tried ringing both the Limassol and Nicosia Tax Office as well and could not get through except on one occasion. Mostly the phone just rings out before you get a recorded message saying nobody is answering and it cuts you off. The one occasion I did get through was to Nicosia and after being passed around three people I was told I had the wrong area (despite ringing a number associated with enquiries !!). They gave me a number for a Mrs Ionanna. I have rang that number several times and go through the no one is answering voice message before being cut off. Still non the wiser I am afraid. If you are State retirement age you can apply for an S1, which is one of the steps to avoiding paying GESY yourself. However, If you do not have an S1, you have to pay GESY on all your income whatever the source e.g. from salaries or Private Pensions.
The issue is do you pay it on the Pension Lump Sum if you do not have an S1. The wording about GESY Contributions just mentions "Pensions". Looking at the 2019 Tax Return it seems as though you should record it under Section H, Income which is Exempt From Tax but Subject to GESY, Code 7 Lump Sum Payments. Even if you put in Section 4 B1, (which I do not think is correct as this is about income rather than lump sums) and use the exempt Code, I think you still get clobbered for GESY without an S1.
Jason
I have tried the Paphos Tax Office today and it was a complete waste of time. The tax window by the main entrance was completely shuttered off and only a box for leaving forms was there. The usual tax window by the cashiers office was also inaccessible and completely shuttered. I did notice a sign by one of entrances in another block that visits were by appointment only. I have tried ringing both the Limassol and Nicosia Tax Office as well and could not get through except on one occasion. Mostly the phone just rings out before you get a recorded message saying nobody is answering and it cuts you off. The one occasion I did get through was to Nicosia and after being passed around three people I was told I had the wrong area (despite ringing a number associated with enquiries !!). They gave me a number for a Mrs Ionanna. I have rang that number several times and go through the no one is answering voice message before being cut off. Still non the wiser I am afraid. If you are State retirement age you can apply for an S1, which is one of the steps to avoiding paying GESY yourself. However, If you do not have an S1, you have to pay GESY on all your income whatever the source e.g. from salaries or Private Pensions.
The issue is do you pay it on the Pension Lump Sum if you do not have an S1. The wording about GESY Contributions just mentions "Pensions". Looking at the 2019 Tax Return it seems as though you should record it under Section H, Income which is Exempt From Tax but Subject to GESY, Code 7 Lump Sum Payments. Even if you put in Section 4 B1, (which I do not think is correct as this is about income rather than lump sums) and use the exempt Code, I think you still get clobbered for GESY without an S1.
Jason
Re: GESY on Pension Commutations ?
Good News for those concerned with Lump Sums from Pensions
Trev..
Re: GESY on Pension Commutations ?
Hi All,
I finally received a response from the Paphos Tax Office yesterday in response to my query on this. Pension Lump Sums are tax free, but unless you have an S1, which I do not, the Pension Lump Sum is subject to GESY, which is now 2.65%, will work out at hefty amount. The "horses mouth" answer confirms what I had heard from other sources. I am a number of years from UK State retirement age so this looks like it will be unavoidable.
On a separate point the the final tax submission date has been extended again to the 15th December
https://cyprus-mail.com/2020/11/27/taxi ... cember-15/
Jason
I finally received a response from the Paphos Tax Office yesterday in response to my query on this. Pension Lump Sums are tax free, but unless you have an S1, which I do not, the Pension Lump Sum is subject to GESY, which is now 2.65%, will work out at hefty amount. The "horses mouth" answer confirms what I had heard from other sources. I am a number of years from UK State retirement age so this looks like it will be unavoidable.
On a separate point the the final tax submission date has been extended again to the 15th December
https://cyprus-mail.com/2020/11/27/taxi ... cember-15/
Jason
Re: GESY on Pension Commutations ?
This is a link to the section briefly explaining how GESY is funded:
https://www.gesy.org.cy/sites/Sites?d=D ... ofinancing
I remember in 2019 there were several queries when people realised they had to pay Gesy contributions on interest earned in Cyprus bank accounts and as the system has rolled out there are other categories that attract GESY contributions - hence the need in many cases for a good accountant to make sure there is no overpayment.
Another anomaly is those people with MEU1 who have to pay GESY contributions but will not be eligible for state healthcare until they have lived in Cyprus for 5 years and get permanent residency eg early retirees who live off their savings/pensions.
https://www.gesy.org.cy/sites/Sites?d=D ... ofinancing
I remember in 2019 there were several queries when people realised they had to pay Gesy contributions on interest earned in Cyprus bank accounts and as the system has rolled out there are other categories that attract GESY contributions - hence the need in many cases for a good accountant to make sure there is no overpayment.
Another anomaly is those people with MEU1 who have to pay GESY contributions but will not be eligible for state healthcare until they have lived in Cyprus for 5 years and get permanent residency eg early retirees who live off their savings/pensions.
