BYE, BYE LEVY...
The President of the Republic of Cyprus announced the decision of the Council of Ministers abolishing the annual government levy fee.
On the 21/02/2024, the President of the Republic of Cyprus announced the decision of the Council of Ministers abolishing the annual government levy fee of €350 which has been imposed on all Cypriot companies since 2011.
Since its introduction, all Cyprus companies were under an obligation to pay the government levy annually and failure to pay was cause for a company to be struck off the register. The decision to scrap the annual government levy was opposed by the Treasury which argued that it would result in a potential loss of €40 million annual revenue and proposed a gradual elimination of the levy, based on a company’s turnover.
The abolishment is effective from 2024 and it serves as an additional measure of support for Cyprus businesses as well as making Cyprus more attractive as a business destination for entrepreneurs and investors. The abolishment will in all likelihood, result in far less companies being struck off by the Registrar. As an added relief, the Cyprus Parliament has approved a proposed amendment of the Companies law, whereby penalties for the late submission of the Annual Returns Forms by companies will also be reduced.
