Hi
Nigel, I used to understand this and now have become confused after chatting to too many people! If money I have invested in UK Bldg Soc will produce, say for example GB£1,000 interest, do I have to pay GB£100 to CY Gov for defence if I am registered for tax in CY? I cannot include it in my normal tax rate of 5 percent?
Thanks for your patience
Interest on Money
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Re: Interest on Money
Hi bitterlemons,
This is the Cyprus Defence Levy, which is taxed as follows:
Dividends from Cypriot companies - 15%
Dividends from foreign companies - 15%
Other Interest from bank, building societies, etc - 10%
The standard rate is 10%. But if your total income is less than €11,970 the rate is reduced to 3%. If you have an interesting earning account in Cyprus, the 10% Defence Levy is automatically deducted from your account - but you can apply for a refund.
If you have already paid tax on the interest in the UK, that will be deducted from your Defence Tax liability.
Regards,
This is the Cyprus Defence Levy, which is taxed as follows:
Dividends from Cypriot companies - 15%
Dividends from foreign companies - 15%
Other Interest from bank, building societies, etc - 10%
The standard rate is 10%. But if your total income is less than €11,970 the rate is reduced to 3%. If you have an interesting earning account in Cyprus, the 10% Defence Levy is automatically deducted from your account - but you can apply for a refund.
If you have already paid tax on the interest in the UK, that will be deducted from your Defence Tax liability.
Regards,
Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
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Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
Read the latest Cyprus property news