Income Source Contribution Rates (%)
Interest accruing to provident fund 3% (non-individual)
Profits of Public Corporate Bodies 3% for years up to 2008.
Dividends 20% for the period 1st January 2012 to 31 December 2013, 17% after 1st January 2014
Rents (25% of the income is exempted) 3%
Comments: A company resident in Cyprus has to pay special contribution to the defense fund based on a deemed distribution of 70% of its profits which accrued in the tax year ending 2 years prior to the 31st December of the current year. The dividend is reduced by any real dividends paid relating to the same profits. The profits are calculated before the set-off of losses brought forward from previous years and is proportionately reduced by the percentage of non-resident shareholders. Upon dissolution the period of 2-years is abolished.