GESY contribution payment taken from interest on savings

[galexinda]

I have been following this topic on FB and it appears that if you have a savings account in a Cyprus bank account that 1.7% of the interest will be paid to the GESY healthcare scheme.

18 March
''Has anyone else had money taken from a bank deposit account for this new Health Service scheme? Got bank statements this morning and there is a debit for health service''. On the bank statement reference is: General Healthcare System (''GHS'')

19 March
''Just been to see the Manager at Coral Bay. He did not know about it and had to ring Head Office. Yes, it is for the GESY healthcare. It is NOT the bank but the government. Everyone will be paying 1.7% of any interest into it''.

[trevnhil]

Like 99.9% of the readers, No I did not know anything about this.. I suppose this in in addition to the 1.7% being taken from our pensions..

[mike strand2]

This is plainly a ridiculous way to charge for the new NHS.

EXAMPLE
Capital in bank €5,000
Bank Interest at 2% = €100
Gesy contribution = 100 x 1.7% = €1.70 A MONTH

[Galini]

Ha! Well that's fine as they won't be getting anything off me then !

[The Aquila]

I understand it’s 1.7% of all earnings which includes bank interest.

[PW in Polemi]

Yes, I understand that too, The Aquila. Same as when we had to pay Defence tax, local banks withheld at source but non local bank interest had to be declared and paid tax on twice a year, June and December. For the health scheme, it will be charged on all income, not just bank interest.

[ApusApus]

Just checked our BoC savings account and nothing has gone out yet!


Shane

[galexinda]

I couldn't find any mention of taking a contribution from interest in this article but have read elsewhere that interest, dividends etc are included as they are classified as income:

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.

https://in-cyprus.com/how-will-we-pay-f ... 03sa1qiCfo

[gazzaga]

This is plainly a ridiculous way to charge for the new NHS.

EXAMPLE
Capital in bank €5,000
Bank Interest at 2% = €100
Gesy contribution = 100 x 1.7% = €1.70 A MONTH

Mike, it's €1.70 per year

[gazzaga]

The GESY payment is also due on rental income be it UK or Cyprus property as well as interest and dividends

[mike strand2]

This is plainly a ridiculous way to charge for the new NHS.

EXAMPLE
Capital in bank €5,000
Bank Interest at 2% = €100
Gesy contribution = 100 x 1.7% = €1.70 A MONTH

Mike, it's €1.70 per year

I had orinally put ‘A YEAR’ but then thought that couldn’t be correct & changed to ‘MONTH’.