Reminder: Deemed Dividend Distribution Payment 30 April 2021

Written by Demetris Nicolaides
26 April, 2021

This is a reminder of the approaching deadline for the Special Defence Contributions (SDC) and General Health System (GHS) contributions on Deemed Dividend Distributions (DDD) for the 2018 tax year that need to be settled by 30 April 2021.

Scope of the legislation

The DDD provisions apply to Cyprus tax resident companies who have not distributed at least 70% of their 2018 accounting profits by 31 December 2020.

Any actual dividends distributed from 2018 accounting profits before 31 December 2020 will reduce the DDD on which SDC is payable. Similarly, the DDD will reduce any actual dividends from 2018 accounting profits paid after the 31st of December 2020 for SDC purposes.

If you have not distributed a dividend then the company is required to withhold and pay to the Tax Department by 30 April 2021 SDC of 17% on the 70% of their 2018 accounting profits after tax that are attributable to Cypriot tax resident and domiciled shareholders.

The DDD provisions also apply to the GHS contribution at 2.65% on the 70% of their 2018 accounting profits that are attributable to Cypriot tax residents regardless of their domicile status.

When do I have to pay:

The deadline for the payment of the deemed distribution has been extended to 30 April 2021.


The easiest way is to make the payment is via JCC Smart using the below two forms:

Form 0623 – Defence Contribution on Deemed Dividends and

Form 0723 – GESY – contribution on Deemed Dividends

For actual dividends kindly note that the payments needs to be made by the end of the month following the month the dividend was declared using Form 603 and Form 0703.

We are at your disposal to assist you with the relevant process.

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