Cyprus Tax News: Extension of the deadline for payment of SDC and GHS contributions

Date: February 15, 2021

Further to our previous alert on deemed dividend distribution (DDD), we would like to inform you that the deadline for the payment of SDC and GHS contributions on such distributions for the tax year 2018 is extended to 30 April 2021 (from 31 January 2021).

This means that, unless a company has distributed at least 70% of its after-tax profits (as adjusted for DDD purposes) until 31/12/2020, the DDD provisions will apply and a liability for SDC and GHS contributions will arise.

It should be noted that no extension is given on the settlement of SDC and GHS contributions arising on actual dividend distributions. SDC and GHS contributions on actual dividends would need to be paid by the end of the following month that the dividend was declared (i.e., 31 January 2021 for dividends declared in December 2020).

It is reminded that prompt payments (Tax codes for DDD: 623 for SDC and 723 for GHS) can be made via JCC smart or online banking while late payments can only be made via online banking.