By Eurofast Taxand
The first package of austerity measures was voted by the House
of Representatives on August 26, 2011. The measures intend to
assist Cyprus in reducing expenditure while increasing revenue and
at the same time maintaining Cyprus's reputation as a stable
and competitive financial centre. The changes entail amendments to
various laws, including amendments to the Immovable Property Tax
whereas a second and most likely a third package of further
financial changes is expected in subsequent months.
The Special Contribution for the Defence of the
Republic Law
- Raising the defence tax rate on interest from 10% to
15%
Interest received by Cypriot tax residents will be subject to a
15% tax rate for the Special Contribution for the Defence of the
Republic, as opposed to the previous 10% tax rate. Individuals, as
well as companies, are equally liable to such taxation. Interest
received by companies, if resulting from the ordinary course of
