Annual levy
Applicable legislation, penalties and instructions on how to easily make the payment online.
Cyprus annual levy
Goodbye to the €350 annual levy
In a landmark decision announced by President Nikos Christodoulidis on 21 February 2024, Cyprus companies will no longer be burdened by the €350 annual levy. This significant move, effective from 2024, is designed to lighten the financial load on businesses and enhance Cyprus's appeal as a prime business destination.
Previously a mandatory cost for all companies registered in Cyprus since 2011, the abolishment of this levy not only marks a break from a decade-long financial obligation but also aims to stimulate economic growth by keeping about €40 million annually in the pockets of businesses. This decision forms part of broader government efforts to support the business community amidst the evolving global economic landscape.
Previously a mandatory cost for all companies registered in Cyprus since 2011, the abolishment of this levy not only marks a break from a decade-long financial obligation but also aims to stimulate economic growth by keeping about €40 million annually in the pockets of businesses. This decision forms part of broader government efforts to support the business community amidst the evolving global economic landscape.
What is the annual levy
The annual levy is a yearly flat fee of €350 a Cyprus company must pay to the Registrar of Companies by 30 June of each year ref. Cap. 113 §391. Non-payment will initially result in the company being prevented from submitting and requesting any kind of certificates. Subsequently, the Cyprus Registrar of Companies may decide to apply the law and strike-off (i.e. deregister) the company ref. Cap. 113 §327 if the company does not settle its annual levy dues within one year from the due date.
Check your company annual fee status
Deadlines and penalties
Standard payment due: €350 if settled by 30 June
Late payments:
€385 if made between 1 July and 31 August
€490 if settled between 1 September and 30 November
Late payments:
€385 if made between 1 July and 31 August
€490 if settled between 1 September and 30 November
Companies that fail to clear their dues by 30 November face the risk of deregistration
Payment options
The levy is payable to the Registrar of Companies.
The easiest method to settle the annual fee is by using your accountant. You can also make the payment with a debit/credit card online through JCCsmart (for years 2018 and onwards), DRCOR eFiling (exclusively for years 2012-2017), via bank transfer, in cash, or by cheque.
The easiest method to settle the annual fee is by using your accountant. You can also make the payment with a debit/credit card online through JCCsmart (for years 2018 and onwards), DRCOR eFiling (exclusively for years 2012-2017), via bank transfer, in cash, or by cheque.
Your accountant
Perhaps the most logical and practical way to handle your annual levy payment is by entrusting it to your accountant, which is a smart decision. This method streamlines the process, guarantees accuracy, and should not cost you anything extra.
Your accountant will take care of all the paperwork, make sure the documentation is accurate, ensure prompt payment, provide ongoing support, and ensure you never miss the deadline.
Your accountant will take care of all the paperwork, make sure the documentation is accurate, ensure prompt payment, provide ongoing support, and ensure you never miss the deadline.
JCCsmart
JCC Payment Systems Ltd is the primary processor of card transactions in Cyprus, as well as the main online platform for making payments to local suppliers, merchants, organizations, and government institutions using a debit/credit card.
The settlement of the annual levy from 2018 onwards can be completed through JCCsmart
The settlement of the annual levy from 2018 onwards can be completed through JCCsmart
Bank transfer
Remittance of the due amount can be made via TARGET 2 to the account of the General Government Account at the Central Bank of Cyprus on behalf of the Registrar of Companies and Intellectual Property
IBAN: CY53001000010000000006001023
BIC/SWIFT: CBCYCY2NFBU
IBAN: CY53001000010000000006001023
BIC/SWIFT: CBCYCY2NFBU
DRCOR eFiling
DRCOR eFiling is the official website of the Department of Registrar. Payments can be made only for the years 2012 - 2017 and require prior registration with the Cyprus government gateway (Ariadne). The website also allows checking the current status of all paid/unpaid amounts of annual levy on any Cyprus company.
Payments abroad
Payments can be made to the Cyprus Embassy on behalf of the Registrar of Companies and Intellectual Property in the account N.14.01.04.1.00.206
Cash or cheque
A check from a Cyprus bank and cash payments are acceptable means of payment at the cashier's office at the Registrar of Companies located on the ground floor of Xenios Building at the corner of Makariou III Ave & Karpenisiou Str, 1427 Nicosia. The payment must be accompanied by the annual levy application form.
Benefits of timely payment
Ensuring timely payment of the annual fee is not just about avoiding penalties. It is also about:
- Maintaining your company's good standing and reputation in Cyprus.
- Streamlining company-related processes and documentation which might require a clean financial record. Many banks and financial institutions in Cyprus often require up-to-date certificates from the Registrar of Companies, indicating that all fiscal obligations, including the annual levy, have been met.
- Regular and timely payments show a commitment to local regulations and fiscal obligations. This can instill confidence in regulatory bodies and reduce the likelihood of audits or unnecessary scrutiny.
- Proactively addressing financial obligations means one less thing to worry about. It ensures that you are free from last-minute rushes or the stress of accumulating penalties, allowing you to focus on your core business.
Frequently Asked Questions (FAQ)
– When was the 2023 annual levy deadline?
The last date for payment without penalties was 30 June 2023.
– What happens to a company that does not pay?
If a company does not settle its annual fee and any associated late charges by 30 November, it may be delisted from the Registrar of Companies, rendering it defunct. To regain its good standing status, the company must undergo a reinstatement procedure, which entails settling the outstanding levy, late charges, and incurring some additional penalties and administrative fees
– Do dormant companies pay annual levy?
A dormant company is one that has no activities and does not own any assets. The €350 fee is payable by all registered limited liability companies, regardless of whether the company is active or dormant.
– My company was incorporated after 30 June.
Only registered Cyprus companies are liable to pay the annual levy. Therefore, a company incorporated in the second half of the year will commence payments in the following year, and a company dissolved before 30 June will not have any obligations for the current year.
– Is there a limit on the amount for group companies?
Yes, the total fee for companies belonging to a group is capped at €20,000 ref. Cap. 113 §391(1)b.
– When was the fee introduced and why?
Introduced in 2011 under the Companies Law Cap. 113, the €350 fee was part of the fiscal consolidation measures aimed at supporting the Cypriot economy. The funds collected through this levy contribute to the country's financial stability and development.
– Which companies can be exempted from the paying?
Only newly incorporated companies and certain group companies are exempt.
– Is there a possibility that the annual fee might be abolished?
Yes, there is a chance that the company annual levy may be abolished. The House Commerce Committee is currently considering the possibility of gradually reducing and ultimately abolishing this levy, with plans that extend up to 2026. However, the decision is subject to legislative processes and potential challenges, as some MPs are concerned about the constitutionality of reducing state revenues.
The outcome will depend on the political and legislative developments surrounding this issue.
The outcome will depend on the political and legislative developments surrounding this issue.