The rate of SDC tax on dividends paid by Cyprus companies has
reverted to 17% with effect from 1 January 1 2014, after having
been temporarily increased to 20% for 2012 and 2013.
It should be noted that SDC tax applies only to Cyprus-resident
shareholders. Dividends paid to non-resident shareholders, whether
corporate or individual, are exempt. In addition, dividends paid by
one Cyprus-resident company to another are exempt from SDC tax
unless the dividend is paid more than four years after the
underlying profit was earned.
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