Cyprus Companies Avoiding to Pay Company Levy

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Companies Avoiding to Pay Company Levy The managing head of the Company Registrar Spyros Kokkinos has commented on the avoidance of companies to pay the annual company levy in Cyprus and the implications it may have in taking swift actions on behalf of the government by striking them off. Between the months of March and May, the period of the negotiations for Cyprus’s bailout from Europe – Company registrations dropped by 50% in accordance to previous years statistics. Mr Kokkinos also commented that to current date over 160,000 registered companies have failed to pay the €350 annual levy. That is 60% of registered companies who either ignored or do not have the ability to pay the annual fee. The proposed income from the fee amounts to €90.3 million. Today only 40% of the fee has been recovered. In accordance to legislation, avoiding paying the fee has the consequence of a €35 penalty within the first two months and €140 from two to five months. Following on the five months, legislation states that the company is to be stricken off and in order to have the company reinstated a fee of €500 would be payable within the first two years and €750 beyond that. Mr Kokkinos recommended for actions not to be rushed, although there is a responsibility to uphold the law.