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New Duty Fee, Annual levy by The registrar of Companies in Cyprus
On Friday 26 August, the Cyprus Parliament voted the first package of austerity measures in the form of tax amendments in order to improve Government finances and reduce the budget deficit.
As a result of such measures, a fixed annual levy of EUR 350 has been introduced, which is imposed on every Cyprus company, and capped at EUR 20,000 for companies belonging in a group as defined in Companies Law.
This levy will not apply to dormant companies, companies that do not own any assets, or companies that own property in a territory not controlled by the Republic.
The levy is payable by 31 December 2011 in relation to 2011 and by 30 June in respect of each subsequent year. To be clear, companies formed in 2010 or before, will be required to pay the 2011 levy by 31 December 2011, while companies formed in 2011 and prior will be required to pay the 2012 levy by 30 June 2012 etc.
In case where the levy is not paid within the prescribed period, if paid within two months from the due date, a penalty of 10% is payable and increased to 30% if the levy is paid within five months from the due date. If the levy is not paid within five months, the Registrar of Companies will remove the company from the registry (something which is expected to restrict the company from filing documents or requesting certificates from the Registrar’s Office). The return of the company to the registry can be effected within two years with the payment of a levy of €500 and thereafter with the payment of a levy of €750.
As a result of such measures, a fixed annual levy of EUR 350 has been introduced, which is imposed on every Cyprus company, and capped at EUR 20,000 for companies belonging in a group as defined in Companies Law.
This levy will not apply to dormant companies, companies that do not own any assets, or companies that own property in a territory not controlled by the Republic.
The levy is payable by 31 December 2011 in relation to 2011 and by 30 June in respect of each subsequent year. To be clear, companies formed in 2010 or before, will be required to pay the 2011 levy by 31 December 2011, while companies formed in 2011 and prior will be required to pay the 2012 levy by 30 June 2012 etc.
In case where the levy is not paid within the prescribed period, if paid within two months from the due date, a penalty of 10% is payable and increased to 30% if the levy is paid within five months from the due date. If the levy is not paid within five months, the Registrar of Companies will remove the company from the registry (something which is expected to restrict the company from filing documents or requesting certificates from the Registrar’s Office). The return of the company to the registry can be effected within two years with the payment of a levy of €500 and thereafter with the payment of a levy of €750.
Source: www.cclogic.com