Bonus Tax Calculator
See how much tax you'll pay on a bonus and how it affects your tax band
How Bonuses Are Taxed in Cyprus
Bonuses are taxed as regular income. They are added to your annual salary and taxed at your marginal rate. If a bonus pushes your total into a higher tax band, only the portion above the threshold is taxed at the higher rate. This calculator shows the incremental tax impact of the bonus on your total income.
FAQ
Are bonuses taxed differently from salary?
No. Bonuses are treated as ordinary income in Cyprus and taxed at the same progressive rates. However, because bonuses are paid on top of your base salary, they effectively start at your marginal tax rate.
Does a 13th salary affect my tax band?
A 13th salary counts as additional income for the year. If your base salary is near a band threshold, the 13th month could push some income into a higher band, but only the amount above the threshold is taxed at the higher rate.