Nicosia, June 30th, 2022,
An amendment voted by The House of Representatives, effective as of 8 June 2022, the date of its publication in the Official Gazette of the Republic is reducing the Special Contribution for the Defence (“SDC”) rate to 3% for natural or legal persons resident in the Republic that receive or are credited with interest from:
● Development bonds & Saving certificates issued by the Republic;
● Corporate bonds listed on a recognised stock exchange; and
● Debentures or Bonds issued by a government organisation or a local authority, which are listed on a recognised stock exchange.
Furthermore, the reduced 3% SDC rate applies to any government organisation, local authority, provident fund, pension fund and to the social insurance fund, for interest received or credited. The amendment to SDC does not apply to interest income related to ordinary business activity or closely connected to such ordinary business activity.