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The Department of the Registrar of Companies and Intellectual Property, with a view to updating the Register of Beneficial Owners on the basis of the upgraded digital platform, announces the extension of the submission of Beneficial Owners details, for all Companies and other legal entities, until March 31 2024. After this date, non-compliant Companies and other legal entities will receive penalties according to the Prevention and Suppression of Money Laundering and Terrorist Financing Law 188(I)2007, enacted by the House of Representatives on 23/02/2021.
We remain at your disposal for anything you may need in connection with the above.
Contact person
Stelios Ioannou
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+357 22 100 192
Managing Director
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On 29 December 2023 the Minister of Finance issued the Decree No 5844, which sets the interest rate for late payments of taxes at 5% per annum. The Decree is applicable as of 1 January 2024.
We remain at your disposal for anything you may need in connection with the above.
Contact person
Stelios Ioannou
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+357 22 100 192
Managing Director
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As from 01/01/2024, the Social Insurance Contributions rate increased to 8,8% (from 8,3% in 2023).
This rate is applied to a maximum level of emoluments. For 2024, the yearly maximum level of emoluments increased to €62.868 (from €60.060 in 2023).
The rate of 8,8% applies for both the employer and the employee as from 1 January 2024 and for the next five years. Thereafter, the rate will increase every five years by 0,5% until it reaches 10,3% as from 1 January 2039.
Likewise, Social Insurance Contributions rate of Self-employed individuals also increased to 16,6% (from 15,6% in 2023).
We remain at your disposal for anything you may need in connection with the above.
Contact person
Stelios Ioannou
This email address is being protected from spambots. You need JavaScript enabled to view it.
+357 22 100 192
Managing Director
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Every Cyprus tax resident company must declare, at least, the 70% of its accounting profits for the year 2021 by 31 December 2023 and pay the special contribution for defence of 17% and National Health Contribution of 2,65% by 31 January 2024.
Deemed Dividend Distribution (DDD) provisions
According to the DDD provisions, a Cyprus tax resident company should distribute at least 70% of its accounting profits to its Cyprus tax resident shareholders, as dividends, within two years from the end of the tax year to which such profits relate. If the aforesaid profits (or part of them) were not distributed, then the relevant undistributed accounting profits would be considered as "deemed distributed" and the relevant Special Defence Contribution would need to be paid.
DDD provisions are applicable in cases that a Cyprus tax resident company has shareholders that are Cyprus tax residents and Cyprus domiciled and the Cyprus tax resident company has not distributed at least the 70% of its accounting profits for a specific tax year.
The DDD provisions also apply for National Health Contribution purposes in cases that a Cyprus tax resident company has ultimate shareholders Cyprus tax resident individuals (domicility is irrelevant).
Therefore, in the case that a Cyprus tax resident company has failed to distribute at least the 70% of its accounting profits for the year 2021 by 31 December 2023, then the DDD provisions of the Special Contribution for the Defence Law will come into force.
The National Health Contribution should also be paid by 31 January 2024 for the undistributed accounting profits.
Whereas a Cyprus tax resident company is ultimately owned by a non-Cyprus tax resident individual, the DDD provisions are not applicable.
The relevant form to be submitted by the end of the following month of the dividend declaration (actual or deemed) to the Tax Authorities is T.D. 603.
In the case of late payment of the special contribution for defence and national health contributions then there will be an imposition of interest at the rate of 2,25% per annum and to a 5% penalty of the tax due. It should also be noted that an additional 5% penalty may be imposed in the case that the special contribution for defence remains unsettled two months after the above due dates. Also, there is a penalty of €100 if the T.D. 603 form is not submitted within the deadlines.
We remain at your disposal for anything you may need.
Contact person
Stelios Ioannou
This email address is being protected from spambots. You need JavaScript enabled to view it.
+357 22 100 192
Managing Director