CY company dividends

[chrisavv]

hello,
In case of a Cypriot company distributes dividents to the shareholders, the 17% SDC tax and the GESY can they be paid from the company's account thus count as expeenses or the shareholder is responsible? Is it the same situation in the case the dividents are considered deemed?
thank you

 

[Sols]

The shareholder is responsible.

If you're a non-Cypriot/foreigner, check if you qualify for non-domicile. Then you're exempt from SDC (but not from Gesy).

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This is the probably the answer to your question.

 

[chrisavv]

Sols said:
The shareholder is responsible.

If you're a non-Cypriot/foreigner, check if you qualify for non-domicile. Then you're exempt from SDC (but not from Gesy).
Click to expand...

thank you. unfortunately not qualifying. is it the same case for the dividends that are deemed for distribution after the 2 years period? I've read somewhere that the company pays the tax but I cannot find the source anymore

 

[Sols]

Not sure. Maybe @CyprusLaw or @CyprusLawyer101 can help with that.

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This is the probably the answer to your question.

 

[CyprusBusiness]

chrisavv said:
hello,
In case of a Cypriot company distributes dividents to the shareholders, the 17% SDC tax and the GESY can they be paid from the company's account thus count as expeenses or the shareholder is responsible? Is it the same situation in the case the dividents are considered deemed?
thank you
Click to expand...

The company has an obligation to withhold SDC 17% and Gesy 2.65% for tax resident and domiciled shareholders. Lets assume you declare a 100,000 Euro dividend from the company. The company will withhold and pay on shareholders behalf via self assessment method using the rax portal the following:

SDC: 17,000
Gesy: 2,650

Total: 19,650

You, as shareholdrr will receive the net amlunt of Euro 80,350

Thus the deduction will not count as expenses of the company but rather a payment on behalf of the shareholder.

Hope this helps

 

[chrisavv]

thank you