AMENDMENT ON ANNUAL GOVERNMENT LEVY IMPOSED ON CYPRUS COMPANIES
The Cyprus Parliament has recently passed a new Bill amending the Cyprus Companies Act introducing changes on the provisions relation to the imposition of the Annual Government Levy.
Prior to the enactment of the new Bill, the Annual Levy of €350 was imposed to all Cyprus registered companies, subject to certain exceptions*.
The new Bill, which amends the Companies Act, basically provides no exceptions. Now, as from 2013, all Cyprus registered companies shall be subject to a flat government Levy of €350, payable to the Registrar of Companies not later than the 30th of June of each year.
Also, through the new amendment all Companies registered in Cyprus which were exempt in 2012 to pay the Levy, are now liable to pay the €350 Levy. For these companies, payment must be made not later than the 29th of March 2013.
In case that there is delay in the payment of the Levy the following penalties automatically imposed by the Registrar of Companies will apply:
• Up to 2 months – 10%
• 2 to 5 months – 40%
After 5 months- the Registrar deregisters the Company. Restoration of the Company can be made within two years with a payment of €500 annual fee. In case that the restoration will take place after the period of two years from the date of de-registration the annual fee increases to €750.
*The exemptions had applied for the year of incorporation, for dormant / inactive companies and companies with no assets.
Oxford Management will be collecting the Annual Levy from its clients and paying it to the Registrar of Companies with no additional charge.