Reminder: Deemed dividend distribution

Written by Marios Panayides
16 December, 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 2019 tax year that need to be settled by 31 January 2022.

Scope of the legislation

The DDD provisions apply to Cyprus tax resident companies who have not distributed at least 70% of their 2019 accounting profits by 31 December 2021.

Any actual dividends distributed from 2019 accounting profits before 31 December 2021 will reduce the DDD on which SDC is payable. Similarly, the DDD will reduce any actual dividends from 2019 accounting profits paid after the 31st of December 2021 for SDC purposes.

If you have not distributed a dividend then the company is required to withhold and pay to the Tax Department by 31 January 2022 SDC of 17% on the 70% of their 2019 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 2019 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 31 January 2022.


The easiest way is to make the payment is via JCC Smart or tax portal.

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

You May Also Like…