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Deemed Dividend DistributionAs from the year 2003 and onwards 70% of the accounting profits after deduction of the corporation tax (and other adjustments) are deemed to be distributed as dividends the latest 2 years following the year that they were incurred (i.e. for the year 2008 until 31/12/2010).Deemed dividend distribution is subject to special defence contribution of 15%. However, the proportion of the deemed dividend distribution that corresponds to non-Cyprus tax residents is exempt from the payment of the special defence contribution. |