Under the deemed dividend distribution rules Cyprus resident company is deemed to distribute as a dividend 70% of its accounting profits two years from the end of the tax year in which the profits were generated.
Deemed dividend distribution is reduced with payments of actual dividends which have already been paid during the two years from the profits of the relevant year.
Special contribution for defence is charged to the extent that the ultimate direct and/or indirect shareholders of the company are Cyprus tax resident individuals.
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