The Special Contribution does not apply to retirement benefits, payments from approved Provident Funds, remuneration of the crew of qualifying Cyprus ships or reimbursements.

The Special Contribution bands are as follows:
Gross monthly emoluments (EUR)                          Special Contribution
0 – 2.500                                                                                    Nil
2.501 – 3.500                                                                             2,5%
3.501 – 4.500                                                                             3,0%
4.501 plus                                                                                  3,5%

The obligation to pay the Special Contribution is split equally between the employer and the employee.
The Special Contribution is deductible for Income Tax purposes both for the individuals and for the employer.

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(b)    4-year rule on dividends (effective 1 January 2012)
Where a dividend is paid to another Cypriot company more than 4 years from the end of the year in which the profits it was declared from are generated, will be subject to SDC.
Dividends are exempt from SDC where they are paid out of profits arising, directly or indirectly, from dividends on which SDC was previously suffered.