Following the adoption by Cyprus of EU Anti-Tax Avoidance Directive (ATAD), Controlled Foreign Company Rules (CFC) was introduced in Cyprus that may affect a number of companies. In fact a relatively small number of companies may be effected whose profits are quite high over € 750000 per annum, provided their profits are not distributed as dividends up to 7 months from the end of the accounting year. We thought that it is important to give special attention in this and remind you of the provisions of the CFC rules.
The Cyprus Registrar announced the extension of the Levy Tax of 2021 payment deadline. The amount of 350 euros can be paid until the 31st day of December 2021 istead of the 31st of July. It is noted that, if a company fails to timely pay the annual fee it is subject to a late charge.
One of the main changes in the VAT legislation that Cyprus is expected to implement from July 1, 2021 is the imposition of penalties burden on persons who fail to pay VAT through the reverse charge mechanism. The penalty fee will range from €200 for each quarter and with a maximum of €4.000