Home / Offering Memorandum / TAX CONSIDERATIONS / Interest Income

21.7. Interest income

To the extent that interest is received by or credited to a Cyprus tax resident Company, which is considered to arise in the ordinary course of the business or closely connected thereto, is considered as business income and will be subject to corporation tax in Cyprus at the rate of 12.5%. Interest income of companies which act as vehicles for the purpose of financing group companies is considered to be connected with the ordinary carrying on of a business. Interest received and considered as passive income will be subject to a 30% Special Defence Contribution tax.