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
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
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
We would like to remind you for the requirements of the Cyprus Tax Legislation (Assessment and Collection Law as amended in 2002, article 24) regarding the filing of temporary tax returns and relevant temporary tax payments for the year 2023.
Revision of the Temporary Assessment form
All companies may submit a revised declaration of their estimated taxable profit (upwards or downwards) before 31 December 2023. However, submitting a revised provisional tax declaration with an increased estimated taxable profit will result to a 2,25% interest payable on the difference between the initial and the revised estimated amount to be paid. The interest will be charged from the due date of payment of the 1st instalment.
Interest and Penalties
- An administrative penalty of 5% is imposed on each instalment if the company fails to pay the declared tax by the due dates stated above.
- Interest on an overdue instalment of the tax is calculated at an annual interest rate of 2,25%, on the basis of completed months.
- If the provisional tax declared is lower than the 75% of the actual tax payable for the year, then an additional 10% tax is imposed on the difference of the two.
If you require assistance in calculating your estimated taxable profit, then please provide us with an estimated income statement (detailed) for the year and we will provide you with a forecast income tax computation together with our advice as to whether you should proceed with the filing of a Temporary Tax return or not. It is important to note that companies with no taxable profits do not need to deal with the submission of this return.
For any further information, or if you would like us to proceed with assisting you with the above, please do not hesitate to contact us.
You could proceed with the payment of the provisional tax through JCC. Alternatively, we can take over of the above responsibility. The estimation of profits and transfer of funds in our client’s bank account should reach our office by the 18th of December 2023, otherwise we will consider it as an assumption by you of the responsibility to comply with this obligation.
Please bear in mind that our fees for the above will be €50 plus VAT (total €59,50).
Our clients' bank account details can be found below:
CosmoCo Ltd (Clients A/C)
Bank of Cyprus Public Ltd
Account Number: 357003572612
IBAN: CY18002001950000357003572612
Swift Code: BCYPCY2N
On the transfer details please indicate your Company name and "Temporary Tax 2023 - second instalment".
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
We would like to inform you that the implementation of the final solution of the electronic system of the Beneficial Ownership Register commenced on November 14, 2023.
The implementation is divided into three phases:
The first phase covers the period 14/11/2023-31/12/2023 where all companies and partnerships are required to inform/re-register their Beneficial Owners in the 'Final Solution', even if they have already done so in the interim solution system. Please note that no financial penalties will be imposed during this period.
The second phase covers the period 1/1/2024-29/2/2024 and requires those companies and partnerships that did not inform/re-register their Beneficial Owners in the "Final Solution" during the previous phase to do so. It is noted that at this stage financial charges will be imposed.
During the third phase, which covers a period of 1/4/2024 and thereafter, the provisions of Directive Κ.Δ.Π. 112/2021 as amended enter into force.
Below you may also find the announcement from the page of the Registrar of Companies and Intellectual Property in detail.
https://www.companies.gov.cy/en/knowledgebase/news/2126/?ctype=ar
Please inform us the latest by 18/12/2023, if you would like us to assist you with the above.
Bear in mind that our fees for the above will be €100 + VAT.
Kindly note that for the companies and partnerships that did not proceed with the initial registration of the Beneficial Ownership, they will need to do the whole procedure (Ariadni and submission of UBO).
Our fees for the above will be €250 + VAT.
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