PENALTIES, INTEREST AND OTHER CHARGES

From 1/1/2018, the annual official interest rate is 3.5% (calculation for every completed month). (3.5% for 2017, 4% for 2015 & 2016, 4.75% for 2013 & 2014, 5% for 2011 & 2012, 5.35% for 2010, 8% for 2007-2009 and 9% for the years up to 2006).

Additional tax of 5% (on the tax due) is imposed in the event that any tax due is not settled within thirty (30) days of the Last Payment Date.
5% monetary fine is imposed (on the tax due) when a person (natural or legal) omits to pay the tax due until the date stipulated in the Law or until the date stipulated in any notice by the Commissioner.
Additional tax of 10% (on the tax due) is imposed when the temporary tax paid through the two instalments does not cover the 75% of the final tax liability.

Penalty of €100 is imposed for late registration with the Tax authorities (a company must be registered with the Tax authorities within 60 from its incorporation).
Penalty of €100 or €200 is imposed, depending on the case, irrespective of the tax year for late submission of return.
Penalty of €100 is imposed for late submission to the Tax authorities of notification about any changes of the company e.g. changes in the shareholders and directors (the notification must be sent within 60 days).
Penalty of €100 by quarter is imposed for failure to keep proper accounting books and records (Book-keeping must be completed within 4 months from the transaction).
Penalty of €100, for every month, is imposed for failure to issue proper invoices on time (proper invoices must be issued within 30 days from the transaction).
Penalty of €100 is imposed for failure to undertake physical inventory count at the end of the year.

From 1/1/2018, the annual official interest rate is 3.5% (calculation for every completed month). (3.5% for 2017, 4% for 2015 & 2016, 4.75% for 2013 & 2014, 5% for 2011 & 2012, 5.35% for 2010, 8% for 2007-2009 and 9% for the years up to 2006).

10% monetary fine is imposed (on the VAT due) for late settlement of the VAT liability.

Penalty of €85 is imposed for every month of delay for failure to register with the VAT register (The registration threshold for taxable supplies within Cyprus is €15.600. The threshold is either the accumulated turnover subject to VAT during the 12 months preceding any point of time or the expected turnover subject to VAT within the following 30 days from any point of time. There are additional occasions where obligation for registration exists).
Penalty of €85 is imposed for failure to apply for deregistration from the VAT register on time (application must be submitted within 60 days from the change which led to the deregistration).
Penalty of €51 is imposed (for every return) in the event of late submission of the VAT returns.
Penalty of €15 is imposed (for every return) in the event of late submission of the INTRASTAT returns.
Penalty of €51 is imposed (for every return) in the event of late submission of the VIES statements.

3% monetary fine is imposed for every month of delay with a maximum rate of 27% (on the amounts due for the Social Insurance fund and the Social Cohesion Fund).

Any company that fails to file to the Registrar any document required by law to be filed therein, may be struck off from the Register.

In case the Levy is paid within two months from the due date (31/08) a penalty of 10% is imposed (must pay €385) which increases to 30% (must pay €490) if the Levy is paid within five months of the due date (30/11). If the Levy and the applicable penalty for late payment are not paid within five months of the due date, then the Registrar of Companies proceeds to strike off the company from the Register. Reinstatement on the Register is possible and if done within two years from the date of strike off , the required fee to be paid is €500 whereas after two years the fee to be paid increases to €750