CLARIFICATIONS ON THE SPECIAL LEVY IMPOSITION OF €350
The new amendment of the Companies Law (no. 117(1)/2011) passed on the 31st of August 2011 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 31st of December 2011.
b. All the existing registered companies are required for each year following the current year, to proceed with the payment of the Levy, not later than the 30th of June of each year.
c. A company shall not be required to pay such Levy, in the year of incorporation.
d. For Group of Companies the total amount cannot exceed the €20.000 (which shall be equally divided among them).
e. The Levy will not be imposed in case of inactive Companies, companies without any assets and companies holding assets located within Cyprus but in the non controlled areas of the Republic of Cyprus, are exempt from the imposition of such Levy, at the discretion of the Registrar of Companies.
In case that there is delay in the payment of the Levy the following penalties will apply:
• Up to 2 months – 10%
• 2 to 5 months – 30%
After 5 months- the Registrar deregisters 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.
By means of clarification Companies described in under category (e) herein above, which consequently are not obliged to pay the Levy, are the ones which fall under the following categories:
• Companies with neither assets nor turnover; or
• Companies with assets but no turnover; or
• Companies with turnover but no assets
• Companies with assets located in uncontrolled areas of the Republic of Cyprus (Turkish occupied areas of Cyprus).
As per the circular of the Cyprus Institute of Certified Public Accountants, turnover should include income deriving from dividends, interest, commissions, rent , royalties etc, and it should be interpreted in its broader meaning.
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