I am resident in Cyprus and receive dividends and gross interest from abroad. When do I need to pay any tax?
HI TOM, AS YOU ARE RESIDENT IN CYPRUS THERE IS NO TAX TO PAY ON DIVIDENDS and gross INTEREST from abroad
However, there is special defence contribution to pay. The payment of special defence contribution on dividends and interest ,when withheld at source is due on or before the end of the month following the month in which the withholding is made.
When special defence contribution is payable by the recipient of the dividend or interest, as in the case of dividends and interest received from overseas sources, under the self-assessment system, the special defence contribution is due by two instalments.
For dividends and interest received up to 30 June 2015 the special defence is payable by 30 June 2015 and for amounts received from 1 July 2015 to 31 December 2015 the special defence is payable by 31 December 2015.
Any foreign tax is deducted as a credit against the special defence contribution. Special defence contribution payable according to any assessment issued by the Inland Revenue, is due on or before the end of the month following the month in which the assessment is issued.
If the special defence contribution is not paid by the due date, there is a penalty of 5% plus interest is charged from the due date until the date of payment.
The rate of the special defence contribution is 17% for dividends from 1 January 2014 (from 1 January 2012 to 31 December 2013 was 20%) and 30% for interest received from 29 April 2013 (from 31 August 2011 to 28 April 2013 was 15%). However, there is a reduced rate of 3% for interest if the total income,including the interest is less than €12,000.