Amendments To The Special Defence Contribution

On 8 June 2022, amendments to the Special Contribution for the Defence Law were published in the Cyprus Government Gazette (“Law amendments”) amending the range of taxpayers eligible for 3% taxation on interest accrued from savings certificates and bonds issued by the Cypriot Government as well as from corporate bonds. The Law amendments also provide further clarifications on the same matter.

Until now, “every individual who is resident in the Republic for interest received or credit from savings certificates of the Republic of Cyprus, corporate bonds, development stocks of the Republic of Cyprus, as well as interest received or credit by a Provident Find or the Social Insurance Fund” was taxed under the Special Defence Contribution at the rate of 3%.