Home
ResidentialCommercial
Quick Search


ID or string



Price
-  


Advanced Search

Latest Properties
Coralli Shore Habitat Atlantida C Flat 203
Coralli Shore Habitat Atlantida C Flat 202
Coralli Shore Habitat Atlantida C Flat 201
Coralli Shore Habitat Atlantida C Flat 104
Coralli Shore Habitat Atlantida C Flat 102
Coralli Shore Habitat Atlantida C Flat 101
Coralli Shore Habitat Atlantida B Flat 304
Coralli Shore Habitat Atlantida C Flat 103

  

Links

  Recomended projects

  
see on the map >>

  Association


   Weather in Cyprus
    
 
Home arrow Legal and Finance arrow Special Contribution for Defence
HomeCyprusServicesLegal and FinanceContactsNewsCalculators
Special Contribution for Defence PDF Print E-mail

Special contribution for defence is imposed on income earned by Cypriot tax residents. Non-tax residents are exempt from special contribution for defence. It is charged at the rates shown in the table below:

 

Tax rates

Individuals                Legal entities

           (from 1.1.2003)       (from 1.1.2003)

       %                             %

Dividend income from Cyprus resident companies                                   15                             Nil

Dividend income from non-Cyprus resident companies                            15                   Nil (under conditions)

Interest income arising from the ordinary activities or

closely related to the ordinary activities of the business                             Nil                             Nil

Other interest                                                                                             10                                           10

Rental income (reduced by 25%)                                                                 3                               3

Profits of semi-government organizations                                                N/A                             3

 

Notes

1. Dividend income from abroad is exempt from defence fund contribution provided that the company receiving the dividend owns at least 1% of the company paying the dividend. This

exemption does not apply if:

 

(a) more than 50% of the paying company activites result directly or indirectly in investment income and

 

(b) the foreign tax is significantly lower than the tax rate payable in Cyprus.

 

When the exemption does not apply, the dividend income is subject to special contribution for defence at the rate of 15%.

 

2. Interest income from savings bonds, development bonds and deposits with the Housing Finance Corporation including interest earned by a provident fund will be subject to special contribution for defence at 3% (instead of 10%). In the case where the total income of an individual (including interest) does

not exceed C£.000 in a taxable year, then the rate is reduced to 3%.

 

When special contribution for defence is not deducted at source, it is payable in 6 monthly intervals on 30 June and 31 December each year.

 

Dividends received from companies net of 20% withholding tax under the legislation that was in force up to 31 December 2002, and not distributed as dividends up to 31 December 2002, can be distributed within six years from the date of their receipt without any further tax deduction.

 

International business companies electing to be taxed at the rate of 4,25% for the years 2003, 2004, 2005 will not be subject to defence fund contributions on any income arising for these three years.

 

Foreign taxes paid can be credited against the defence tax liability.

 

Deemed dividend distribution

If a Cyprus residend company does not distribute a dividend within two years from the end of the tax year then:

 

70% of accounting profits (after adjustments) are deemed to have been distributed.

15% special contribution for defence is imposed on deemed dividend distribution applicable to shareholders who are residents of Cyprus.

Deemed distribution is reduced with payments of actual dividends which have already been paid during the two years from the profits of the relevant year.

 

When an actual dividend is paid after the deemed dividend distribution, then special contribution for defence is imposed only on the additional dividend paid.

                                                                                    PriceWaterhouseCoopers
 
< Prev   Next >

© Copyright with   eca3Dmediapro   2018