The SDC Amending Law which was passed by the House of Representatives has now been published in the Official Gazette. Its changes apply to natural or legal persons resident in the Republic of Cyprus.
The SDC Amending Law introduces a reduced contribution rate of 3% in the instances where interest is received or credited from the following:
- Government issued saving certificates and development bonds;
- Corporate securities listed on a recognised stock exchange, and
- Local government authority or government agency issued bonds or securities listed on a recognised stock exchange.
It also applies the reduced 3% contribution rate to interest received by or credited to local authorities, government agencies, pension funds, provident funds and the Social Security Fund.
Finally, it clarifies that interest received in the normal course of business, or closely linked to the normal course of business, is not subject to SDC contributions.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.