On 9 June 2023, an amending Law (L40(1)/2023) to the Special Contribution for the Defence (‘SDC’ or the ‘Law’) Law of 2002 until (No.2) of 2022 was published in the Official Gazette of the Republic of Cyprus, with respect to the payment of SDC on rents.
In accordance with the amendments made in the Law, every person who pays rent should pay in 2 instalments, by the 30th of June and by the 31st of December of each year, the SDC withheld during the first and second semester of the year, respectively.
In cases where SDC is not withheld or withheld and not paid within the month following June 30 and December 31 of each year, with respect to rents paid during the first and second semester of the year, respectively, interest shall be imposed at the rate of 2.25%.
It is noted that the SDC Law already provides for a penalty of 5% on the due tax in such instances where the due tax is not timely paid.
Payments are made via
JCCsmart and through online banking using the payment reference code from
Tax Portal of the Tax Department after you create the liability.
Our Tax Department is at your disposal for any further clarifications, information, or assistance you will need with the calculation of your provisional tax.