After the intervention of trade unions, tax rates changed in Northern Cyprus

The Ministry of Finance of TRNC and trade unions have agreed on basic categories and tax rates. The new tax agreement has been published in the "Official Gazette" and has come into effect.

The agreement between the country's Ministry of Finance and five trade unions of public servants was reached last Friday. The previous tax agreement, published in the "Official Gazette" before the New Year, was canceled, and a new one was published in its place.

According to the Minister of Finance, Ozdemir Berova, under the new document, annual tax brackets and rates will be distributed as follows:

• 10 percent for the first 30,000 TL,
• 20 percent for the next 30,000 TL,
• 25 percent for the next 76,000 TL,
• 30 percent for 100,500 TL,
• 37 percent for 236,500 TL.

The Council of Ministers also set the amount of a personal deduction at 320,000 Turkish Lira for the tax year 2024.

Recall that before the new year, the Council of Ministers of TRNC approved a resolution, having the force of law, on the reorganization of basic groups and income tax rates. The document was published in the "Official Gazette" and came into effect on January 1st. The maximum tax rate in the document was set at 40% (for amounts exceeding 420,000 TL).

This decision caused dissatisfaction among the five trade unions of public servants, who declared their readiness to stage mass strikes and protest actions. In the end, the parties sat down for negotiations and were able to reach a compromise.