The Company / Personal Tax That Everyone Forgets About!!! And Gets Business Owners to Trouble

We are writing to remind you of one Most Common Misconception that all Cyprus Tax Resident Business Owners have about their Company Taxes!!!!

The Misconception is Called "Deemed Dividend Tax"!!!!

If you are
a Cyprus Tax Resident;
and
Your Cyprus Company is Profitable (hence paid its Corporation Tax)
then
After 2 Years
You Must Also
Pay Special Defence Tax
on the Net Profit :(((


Example:


2016: Profits 100,000 less 12.5% Corporation Tax 12,500 = Net Profit 78,500
After 2 Years


You are considered to have taken out as dividends, 70% of the 78,500 Net Profits (see line above)

 

==>


You have to also Pay 17% x 70% x 78, 500 = Euro 10,412.50 Special Defence Tax on the Deemed Dividend Distribution!!!! 

If you need us to explain this further for you please let us know by replying to this email or calling me at 99 428 543