Special Defence Contributions

Applicable to Companies

1.

Dividends paid by a Cyprus resident company to another Cyprus resident company.

0%

2.

If not distributed after a period of four (4) years, dividend is subject to defence contribution. (20% in year 2013)

17%

3.

Distribution of dividend by a Cyprus resident company

20%

4.

Fixed assets allocated to the directors/shareholders, treated as deemed distribution of dividend

20%

5.

Fixed assets allocated / transferred to directors / shareholders
(If origi­nally were donated to the company by the directors / shareholders

0%

6.

Interest received out of extraordinary course of business. It includes deemed interest for companies at 9% on shareholders & directors debit balances

30%

7.

Rental Income received from immovable property (after deducting 25% )

3%

Applicable to Individuals

1.

Interest received by an individual both from Cyprus and from abroad

30%

2.

Interest received by provident funds, Government Saving Certificates & Bonds

3%

3.

Rental Income received by a Cyprus resident from immovable property
(after deducting 25% )

3%

4.

Interest received by an individual with a yearly income less than €12.000

3%

5.

Dividends received by Cyprus resident individuals (20% in year 2013)

17%

6.

Dividends received by non-resident individuals

0%

7.

Interest received by individuals from Government bonds and Government savings certificates

3%