Wednesday, 23 January 2013

Flat annual levy for all Cyprus Companies


The new amendment of the Companies Law (no. 117(1)/2011) passed on the 7th of December 2012 by the House of Representatives, provides the following:

a. All existing registered companies are required, with regards to the current year, to proceed with the payment of a Levy of €350 (hereinafter referred as ‘the Levy’), not later than the 30th of June of each year.

b. A company shall not be required to pay such Levy, in the year of incorporation.
In case that there is delay in the payment of the Levy the following penalties will apply:
• Up to 2 months – 10% (3rd of July - 31st of August):  €385
• 2 to 5 months – 40% (1st of September – 31st November): €490
After 5 months- the Registrar will de-register the Company. Re-registration of the Company can be made within two years with a payment of €500 annual fee. In case that the re-registration will take place after the period of two years from the date of de-registration the annual fee increases to €750.

c. Companies which were exempted from the payment of the annual fee for 2012, in accordance with the previous legislation, will now have to proceed with the payment prior to the end of March 2013.

Delay in the payment of the levy will incur penalties ranging from 10% to 30% even leading to the company’s removal from the Registry. Removal from the Registry will automatically exclude the company from filing any documents or requesting certificates from the Registrar’s Office while possibly facing problems with the legality of the transactions to which it is engaged.

The deadline for the payment of the Levy as from 2013 onward will be 30 June.

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