Home Оффшорные обзоры Tax schemes: dividend Cyprus

Tax schemes: dividend Cyprus

Print PDF

Dividends received by a resident of Cyprus, are not taxed if they had been received from foreign companies, whose authorized capital share of a company resident of Cyprus is more than 1%.

═══════════ Tax exemption does not apply if the foreign company:

═══════════ ══════ - more than 50% of its income from investment activities

═══════════ ══════ - Foreign tax burden on the company paying the dividends is significantly less than the tax burden on companies - a resident of Cyprus. In this case, "much less" is interpreted as less than 5%

═══════════ If dividends do not qualify for tax exemption, or if participation is less than 1% of the share capital of the company paying the dividends, they are taxed on defense at a rate of 15%. However, the tax withheld from a foreign source of payment may be accepted on the subtracted in calculating the tax on defense, payable to the budget, even if it was withheld in a country without an international treaty on avoidance of double taxation with Cyprus.