Cyprus Companies should be aware of the deemed distribution provisions of the Special Contribution for the Defence Law on profits and dividends.

In accordance with the Cyprus Tax Law, Cyprus Companies are deemed to have distribute in the form of dividends, 70% of their accounting profits after deducting the Cyprus taxes, from the end of the second year of the year when the profits has been related. Special contribution for defence at 17% for the tax year 2015 will be payable on such deemed dividends to the extent that the shareholders (companies and individuals) are Cyprus tax residents. The amount of deemed distribution is reduced by any actual dividends paid out of the profits of the relevant year at any time. In this respect, profits of the year 2013 are subject to a deemed distribution on 31 December, 2015.This special contribution for defence is payable by a Cyprus Company on behalf of its shareholders.

Cyprus Companies which declare and pay special contribution for defence after the due dates, additional fines and penalties will be imposed.

For more information please contact our offices:
info.nicosia@pkf.com.cy

Tel.No. + 357 22 462727

PKF / ATCO Limited is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. This publication is for information purposes only and should not be considered as professional advice.

Revision of Cyprus Company’s temporary tax assessment and second installment payment in relation to the year 2015

Cyprus companies have to pay the second installment of their provisional tax declared to the Cyprus Tax Department earlier this year.
According to the Cyprus Income Tax Law, Cyprus companies had the obligation to submit a temporary tax assessment / estimation of their 2015 chargeable income.
The temporary tax assessment / estimation is payable in two equal installments, before or at the following dates:
–   31 July 2015
–   31 December 2015
A 10% surcharge is imposed on the difference between the tax as finally determined in the relevant annual report (financial statements) and the temporary tax assessment / estimation when the temporary assessment / estimation is less than the 75% of the chargeable income. Revised tax assessment / estimations can be submitted at the Cyprus Tax department on or before 31 December 2015.
Cyprus Companies which pay their taxes after the due dates interest is imposed.
If in according to the company’s estimates there is no taxable income or any tax due, the Cyprus Company is not required to make a declaration.

For more information please contact our offices:

info.nicosia@pkf.com.cy

Tel.No. + 357 22 462727

PKF / ATCO Limited is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. This publication is for information purposes only and should not be considered as professional advice.