We would like to let you know that the Department of Registrar of Companies has announced that the submission period of beneficial owners' data to the Beneficial Ownership Register of Cyprus is extended to 31 July 2022.
According to the Prevention and Suppression of Money Laundering Activities Laws of 2007-2021, companies and any other legal entities incorporated in the Republic of Cyprus must obtain and hold adequate, accurate and current information on their beneficial ownership. This requires their directors (or other officials) to identify and electronically submit all relevant information of the beneficial owner(s) who own or control the legal entities to the "Electronic Filing" system, through the government gateway portal “ARIADNI”.
It is highlighted that the responsibility for the submission and timely update of information lies with the legal entity and its officials, and penalties may be imposed to those that do not comply with their obligation to submit their beneficial owner(s) data.
The Registrar of Companies has issued comprehensive guidance that can be accessed here.
We can assist you with the registration of your company to ARIADNI (if not already registered), as well as with the collection and submission of all relevant Beneficial Owner information to the Electronic Filing system, on behalf of your company. A fee of €100 + VAT will be charged for our assistance in registering your company to ARIADNI and of €150 + VAT for submitting the Beneficial Owner(s) information to the Register.
For any further information, please do not hesitate to contact us.
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
We would like to inform you that the Cyprus Tax Authorities have issued a circular to remind that by the 31st of March 2022 the below tax returns should be submitted:
- Income tax returns of the Companies (T.D.4) for the tax year 2020.
- Self-employed persons whose turnover exceeds the amount of €70.000 and have obligation to prepare audited accounts (T.D.1 – Self Employed) for the tax year 2020.
- Declaration of Withheld Special Contribution for Defense and Contribution to the General Healthcare System from Interest for the period from 1st of January 2019 to 28th of February 2022 (T.D. 602).
- Declaration of Withheld Special Contribution for Defense and Contribution to the General Healthcare System from dividends for the period from 1st of January 2019 to 28th of February 2022 (T.D. 603).
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
The Council of Ministers issued a Decree on the 4th of February 2022 which states that individuals are exempted from the obligation to submit a personal income tax return for the tax year 2021 if their annual gross income is below €19.500.
To be reminded, in August 2020, Cyprus amended its Assessment and Collections of Taxes Law stated that from the tax year 2020, all individuals with annual gross income that falls under the provisions of the Article 5 of Income Tax Law, were obliged to submit personal tax return.
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
Every Cyprus tax resident company must declare, at least, the 70% of its accounting profits for the year 2019 by 31 December 2021 and pay the special contribution for defence of 17% and National Health Contribution of 2,65% by 31 January 2022.
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. Failure to distribute the aforesaid profits, 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 2019 by 31 December 2021, then the DDD provisions of the Special Contribution for the Defence Law will come into force.
The deemed dividend distribution provisions on the accounting profits for the tax year 2019 will be triggered on 31 December 2021. The said provisions will come into force in case a Cyprus tax resident company does not distribute at least 70% of its 2019 accounting profits by 31 December 2021.
The National Health Contribution should also be paid by 31 January 2022 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 1,75% 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
Extension to the deadline for the payment of 2021 Annual Levy
New Deadline: 31/12/2021
We would like to inform you that the Department of Registrar of Companies has announced that the deadline for payment of the 2021 Annual Levy by registered companies is extended to 31 December 2021.
Furthermore, the Department underlines that:
- Payments of the Annual Levy for the years 2018 and on may be carried out either through the JCCSMART website https://www.jccsmart.com or at the Department's cash registry.
- Payments for the previous years that is 2012 - 2017 will be made either at the Department's cash registry or through the website of the Department of Registrar of Companies "other electronic services" after first connecting to the Government Portal "Ariadne".
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