Cyprus Tax News: Refunds on GHS

The Health Insurance Organization (HIO) has issued instructions regarding the refund process for contributions paid in excess of the maximum amount on which contributions were due.

General Health System (GHS) contributions are capped at a threshold of €180.000, and in case contributions have been paid on an amount exceeding €180,000, the contributor can claim a refund of the contributions paid to the HIO on the amount in excess of €180.000, by submitting a relevant  form.

The HIO has issued an application form for claiming refunds on excess contributions, which must be completed by the contributor and submitted to the Organization along with the required supporting documentation for examination, after the end of the calendar year in which the excess contributions were paid. In case of contributions in respect of employees’ remuneration in excess of the maximum amount, the contributor can apply for a refund before the end of the calendar year.

No amount of contributions can be claimed after the end of 3 years from the end of the calendar year in which such contributions were paid.

It is further noted that the refund will be calculated per calendar year and the order of the sum of contributions will be determined first on the emoluments of employees, then on the emoluments of self-employed and officers, then on pensions, and finally on other income.

The refund application will be examined within a period not exceeding 60 days. Upon its approval the contributor will be notified accordingly, and the refund will be paid through wire transfer within 30 days from the date of approval of the request.

We are available to assist you in calculating the refund of overpayments as well as applying for the refund of the relevant contributions.