ANNUAL CORPORATE LEVY – “DORMANT COMPANIES”

According to the interpretation of the Law regarding to the obligation of payment of the corporate levy “the dormant company” shall be interpreted in its broad meaning. Explicitly, its meaning must not be limited to the total revenue of business, which comes from sales or providing services but it is extended to revenues, which come from the activity of the company, for instance: dividends, interests, supplies, rent, exploitation rights and so on.

 

When a company is DORMANT, the Director of the Company has to submit the relevant confirmation to the Company Registrar in order to be exempt from the payment of the corporate levy. In this case if the confirmation is submitted till 30th of June, then the Company is considered to be dormant for whole year for which the confirmation was given.

 

If a company has activities after submitting the said confirmation but before 31st of December there is no obligation of payment of the corporate levy for this year but the Company is obliged to pay the levy for the subsequent year until June.

 

For further information please contact:

Angela Katchies

Advocate

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+357 25508000

Areti Charidemou & Associates LLC Law Firm