apartment taxes
yulia asks:
And what is this defense tax, in terms of how much% and what is it paid from?
Expert answers (2)
(Kotinos)
Payment of the fee is mandatory for the following
persons:
• companies that are tax residents of Cyprus;
• individuals who are tax residents domiciled in Cyprus (Note 7).
The contribution to the defense fund is calculated at the rates,
as indicated below, for the following sources of income:
Dividends - 17%
Interest income - 30%
Interest received by an individual on government Savings Certificates, government bonds, as well as corporate bonds - 3%
Interest received by the approved accumulative fund - 3%
Interest received by the social insurance fund - 3%
Rental income (reduced by 25%) - 3%
Exempt from the fee:
• dividends received by a resident company of the Republic from another resident company of the Republic, with the exception of dividends paid indirectly after four years have elapsed after the end of the year of occurrence of profit distributed in the form of dividends (Note 8);
• dividends received directly or indirectly from dividends for which the contribution to the defense fund has already been paid;
• dividends received by a resident company of the Republic or a non-resident company of the Republic having a permanent representative office in the Republic from a company that is not a resident of the Republic.
This benefit does not apply if:
a) the result of more than 50% of all activities,
a dividend-paying company that is not
a resident, is investment income; and
b) the tax burden that the company (both resident and non-resident companies on
Cyprus), which pays dividends, bears in
other countries, significantly less tax burden of the same company in Cyprus.
persons:
• companies that are tax residents of Cyprus;
• individuals who are tax residents domiciled in Cyprus (Note 7).
The contribution to the defense fund is calculated at the rates,
as indicated below, for the following sources of income:
Dividends - 17%
Interest income - 30%
Interest received by an individual on government Savings Certificates, government bonds, as well as corporate bonds - 3%
Interest received by the approved accumulative fund - 3%
Interest received by the social insurance fund - 3%
Rental income (reduced by 25%) - 3%
Exempt from the fee:
• dividends received by a resident company of the Republic from another resident company of the Republic, with the exception of dividends paid indirectly after four years have elapsed after the end of the year of occurrence of profit distributed in the form of dividends (Note 8);
• dividends received directly or indirectly from dividends for which the contribution to the defense fund has already been paid;
• dividends received by a resident company of the Republic or a non-resident company of the Republic having a permanent representative office in the Republic from a company that is not a resident of the Republic.
This benefit does not apply if:
a) the result of more than 50% of all activities,
a dividend-paying company that is not
a resident, is investment income; and
b) the tax burden that the company (both resident and non-resident companies on
Cyprus), which pays dividends, bears in
other countries, significantly less tax burden of the same company in Cyprus.
10.03.2023
(Leverage Investments)
Good afternoon, Julia! In Northern Cyprus, such a tax does not exist.
10.06.2020
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