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Generic Tax Name Special contribution to the Defense Fund
Tax name in the national language Έκτακτη Εισφορά για την Άμυνα
Tax name in English Special contribution to the Defense Fund
Member State CY-Cyprus
Tax in force since 1984/02/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco

Social security contribution Employers
Legal base

The Special Contribution to the Defense Fund was implemented as from 1984.

Law No 13/1984 took effect for the period from 1st February 1984 to 31st December 1984, the Law No 5/1985 as ammended for the period 1st February 1985 to 31st December 2002 and the Law No 117(I)/2001 as ammended after the 1st January 2003.

Who sets
The tax rate is set by

The tax base is set by

The reliefs are set by



Geographical Scope

The Republic of Cyprus.


The individuals/legal persons that receive dividends, interests, rents.

Tax object and basis of assessment

Income from sources (interests, dividends, rents) in Cyprus received by any person resident in Cyprus.

Deductions, Allowances, Credits, Exemptions

Rate(s) Structure

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

Interests 30%

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.

Tax due date

Semi-annually, 30th June and 31st December for self assessment.

By the end of the month following the month of deduction for amounts taxed at source.

Tax collector

Tax Department

Special features

An individual whose annual income, including interest, does not exceed the amount of €12,000, has the right to a refund of the tax withheld on interest in excess of the amount corresponding to 3%.

Economic function

Environmental taxes

Tax revenue
ESA95 code d51ba

Annual tax revenue (millions)
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 410.20 EUR 2.11
2011 447.50 EUR 2.29
2010 395.62 EUR 2.07
2009 366.97 EUR 1.99
2008 395.40 EUR 2.10
2007 323.40 EUR 1.85
2006 247.90 EUR 1.54
2005 193.70 EUR 1.30
2004 113.80 EUR 0.82
2003 194.30 EUR 1.52
2002 269.30 EUR 2.24
2001 287.40 EUR 2.49
2000 290.10 EUR 2.70