All Cyprus companies are required to pay an annual fixed duty of €350 following the initial package of austerity measures introduced by the Cyprus Government in 2011.
As a result of the tax amendments all companies incorporated in Cyprus must pay an annual fee of €350. The maximum duty for groups of companies has been capped at €20,000 and must be paid to the Registrar of Companies by 30th June each year.
For companies failing to pay the duty by the due date, the legislation provides for financial penalties – 10% if the duty is paid within two months from the due date, increasing to 30% if the duty is paid within five months. Failure to pay the duty within five months will result in the removal of the company from the registry by the Registrar of Companies.
Reinstatement of a company to the registry can be effected within two years with the payment of €500 and thereafter with the payment of €750.
Companies exempted from the duty include dormant companies, companies which do not own any assets, as well as companies owning property located in areas not controlled by the Republic of Cyprus.
Please contact one of our advisors for further information or if you have any questions.