Increase in the Special Defense Contribution tax rate on interest
The Special Defense Contribution rate applicable on interest income received,
credited or deemed to be received or credited to Cyprus tax residents, will
increase from 15% to 30% with effect from 29 April 2013, date of the Law’s
publication in the official Government Gazette.
The Special Defense Contribution tax on interest is imposed only on Cyprus
tax resident individuals and legal persons, which receive interest that is not
earned in the course of the ordinary carrying on of a business.