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Taxation of Dividends

Individuals

Every person resident in Cyprus receiving, or deemed to be receiving, any dividends from a company resident in Cyprus or abroad, is taxed at a rate of twenty per cent (20%) on the amount of the gross dividend. Non-resident individuals are not subject to special defence contribution and thus the paying company will make the dividend payment to the individual gross without any defence tax deducted.

Companies

Resident Companies

A resident company is exempt from the payment of special contribution in respect of any dividends received from a company that is also resident in Cyprus. A company resident in Cyprus which receives dividends from a company which is not resident in Cyprus, in general is exempt from the payment of special contribution on such dividends.