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Tax Alert - Procedure for claiming non-domicile

Procedure for claiming non-domicile

Through the issue of Tax Circulars and Tax Forms, the Cyprus Tax Department has established a procedure for Cyprus tax resident individuals that wish to claim for a non-domicile status.

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Board Member, Head of Tax

KPMG in Cyprus

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Following the amendments of mid-2015 (16/7/2015), the current Special Contribution for Defence (SCD) provisions will exclude from SCD, dividends, interest and rents (as well as from deemed dividend distribution provisions), of individuals who are Cyprus tax residents but are not domiciled in Cyprus (as defined in the SCD Law) irrespective of the origin of the relevant income (i.e. from sources within Cyprus or abroad).

Through the issue of Tax Circulars and Tax Forms, the Cyprus Tax Department has established a procedure for Cyprus tax resident individuals that wish to
claim for a non-domicile status as follows:

  • All applicants should submit Forms T.D.38(2016) and T.D.38QA(2017)  to the Returns Administration section of the local Tax Department district office where their tax file is maintained.
  • Such forms should be submitted during the first year in which the applicant acquires income from dividends / interest / rents for which s/he claims exemption from Special Contribution for the Defence fund.
  • Applicants who have a domicile of origin in Cyprus and have been Cyprus tax residents during any of the years between 1995-2014 should also submit together with Forms T.D.38(2016) and T.D.38QA(2017), Form T.D.38QB(2017). In the case of such applicants, all three forms would need to be re-submitted every 3 years.

All forms cumulatively consist a Declaration as to the status of the applicant as a non-domiciled individual. The Forms also provide for the documentation that may need to be submitted accordingly. 

The Forms have been uploaded on the website of the Cyprus Tax Department at the following link.

Note: The above forms must also be submitted by individuals that have already obtained a tax ruling with regard to their domicile status and the relevant ruling and response should be attached to the Forms.

 

KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative ("KPMG International") a Swiss entity. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. The views and opinions expressed herein are those of the author and do not necessarily represent the views and opinions of KPMG International Cooperative ("KPMG International") or KPMG member firms.

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