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Abolishment of the Annual Levy from 2024: What to Know
Cyprus has taken a significant step towards enhancing its business-friendly environment by abolishing annual levy from companies starting from the year 2024. The move, as outlined in the Companies...
Reviewed by Gregoris Philippou, Managing Partner
Cyprus Bar Association (since 2013)
Cyprus has taken a significant step towards enhancing its business-friendly environment by abolishing the annual levy from companies starting from the year 2024. The move, as outlined in the Companies (Amendment) Law 2024, Law No. 25(I)/2024, recently published in the Government Gazette on March 15, 2024, marks a pivotal moment for businesses operating within the country.
Under the new legislation, companies registered in the Registrar of Companies will no longer be subjected to the annual levy from 2024 onwards. However, it's important to note that the annual levy for the years spanning 2011 to 2023 will continue to remain in effect.
Announcement by the Department of Registrar of Companies and Intellectual Property
The Department of Registrar of Companies and Intellectual Property has provided clear guidelines regarding the refund process for companies that have already settled their 2024 annual levy.
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For those who made online payments through JCC, any excess amount will be promptly refunded directly to the card used for the transaction.
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For payments made at the Department of Registrar of Companies and Intellectual Property, companies are instructed to submit the necessary documentation, including the KE1 form, payment receipt, and authorization form for payments from FIMAS. Upon verification, the amount will be refunded to the applicant's designated bank account.
This decision to abolish the annual company levy underscores the government's commitment to fostering a conducive environment for businesses to thrive and flourish.
By alleviating the financial burden associated with the annual levy, Cyprus aims to stimulate economic growth, attract investment, and promote entrepreneurship. This abolition of annual levy is expected to have far-reaching implications, not only for existing businesses but also for prospective entrepreneurs considering Cyprus as a destination for investment and business establishment. In addition, it enhances the country's competitiveness on the global stage, positioning it as an attractive hub for business activities across various sectors.
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Conclusion
The abolition of the annual company levy represents a significant milestone in Cyprus's journey towards creating an environment that fosters innovation, entrepreneurship, and sustainable economic development.
By embracing progressive regulatory reforms, Cyprus reaffirms its commitment to supporting businesses and driving long-term prosperity for its citizens and stakeholders alike.
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Gregoris Philippou
Managing Partner
Managing Partner with a distinguished career in corporate and commercial law, trust law, tax law, property law, litigation, and immigration law. First-Class LL.B. from the University of Leicester and LL.M. from the University of Cambridge.
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