Cyprus tax resident companies must declare at least 70% of their 2023 accounting profits by 31 December 2025. Any resulting Special Contribution for Defence (17%) and National Health Contribution (2.65%) must be paid by 31 January 2026.
📌 Key points:
- If 70% of 2023 profits is not distributed, it will be treated as deemed dividend to Cyprus tax resident shareholders.
- Deemed distribution is reduced by any actual dividends paid during 2023–2025.
- Special Contribution for Defence (17%): Cyprus tax resident & domiciled shareholders.
- National Health Contribution (2.65%): all Cyprus tax resident shareholders.
- Deemed dividend does not apply if the company is ultimately owned by non-Cyprus tax residents.
💳 Payment options:
- Credit/debit card via JCCSmart
- Online banking
📄 Tax codes:
Payment Type | Tax Code |
SDC on actual dividends | 603 |
SDC on deemed dividends | 623 |
NHC on actual dividends | 703 |
NHC on deemed dividends | 723 |
⏰ Deadlines & penalties:
- Payments due: 31 Jan 2026. Late payments: 5.5% interest p.a. + 5% penalty; extra 5% if unpaid two months later.
- Dividend declarations via TaxisNet: Forms T.D. 603 (actual) or T.D. 623 (deemed), by the end of the month following the dividend declaration. Late submission: €100 penalty.
As always, M. Target Group specialists remain at your disposal should you require any further information, clarification or professional assistance with any tax matter.
