News
Annual levy of €350 for Cyprus Registered Companies
Cyprus, in an effort to resolve certain problems which have affected the Government’s revenue, as a result of the world economic crisis, has introduced, inter alia, Law No. 117(1) of 2011 requiring every Cyprus company, with some exceptions as defined below, to pay an annual levy in the sum of €350.
The €350 mentioned levy is payable by all companies registered in Cyprus as follows:-
- Existing companies, other than those to which the exemptions set out below apply, are obliged to pay the levy for the year 2011 by the 31st December 2011;
- With respect to the subsequent years the levy must be paid not later that the 30th June of the relevant year.
Exemptions
A company is not obliged to pay the levy in the year of its incorporation or in respect of the year of its incorporation.
The Law further provides that in the case of companies belonging to a group of companies, the total amount of levies to be paid by all the companies of the group shall not exceed €20.000. Such amount shall be equally spread between all the companies of the relevant group.
Penalties of Delay in Payment of Levy
If the levy is paid within two months of the due date a penalty of 10% is imposed which is increased to 30% if the levy is paid within five months of the due date.
If a company which is liable to payment of the levy does not pay until 30th June, the levy will be increased by 10%, if it is paid by the 31st August. In case, however, the delay in payment goes beyond 31st August, but not beyond 30th November of the relevant year, the levy shall be increased further by 30%.
Note: Clarifications are still pending with respect to penalties in case of delay in payment of the levy for 2011.
Striking Off in Case of Non-Payment
If the levy, and the relevant penalties for the late payment are not paid by 30th November, as explained above, then the Registrar of Companies shall proceed to strike off the company in accordance with the relevant provisions of the Cyprus Companies Law.
If the company is struck-off, it may be reinstated within two years by the Registrar of Companies upon payment of €500. In such case the reinstatement will be automatic and the Registrar shall re-enter the company in the Register.
In case the company is not reinstated within two years from the date on which it was struck-off, the Registrar shall again make the relevant entry in the Register and reinstate the company but the amount payable for this shall be €750.