Deemed Dividend Distribution as at 31 December 2023

Companies with accounting profits for tax year 2021 which fall within the Deemed Distribution (DD) provisions, would have to declare a sufficient amount of dividend, in order to meet the 70% threshold of distributed profits on or before 31 December 2023.

Otherwise, on 31 December 2023, the part of up to 70% of after tax profits (as adjusted for DD purposes) which has not been declared as dividends, will be considered as distributed and the relevant Special Contribution for Defense (SCD) and General Healthcare Scheme (GHS) contribution (where applicable) will need to be paid by 31 January 2024.

Late payment of SCD and GHS will be subject to a 5% penalty on the amount due and to interest at the current rate of 2.25% per annum. An additional penalty of 5% on the amount due may be imposed if the tax remains unpaid two months after the above due dates.

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