Cyprus tax department penalties and interest
- Late payment to the Social Insurance Department results in the imposition of a penalty of 3% for each month of delay. The total amount of the penalty cannot exceed 27% of the amount due
- An administrative penalty of €100 is imposed for late submissions, registrations, and communicating changes by the Cyprus tax department. An administrative penalty of up to €200 (depending on the specific case) is imposed for late submission of either a tax return or supporting documentation requested by the Tax Department.
- Late payment of tax due to the Cyprus tax department, a penalty of 5% is imposed on the tax amount due to the Cyprus tax department. An additional penalty of 5% is imposed if the tax remains unpaid 2 months after the payment deadline.
- Late PAYE payment of tax due to the Cyprus tax department, a penalty of 1% per month calculated on the basis of completed months due to the Cyprus tax department
- In case of conviction for non-filing, a person is subject to a fine not exceeding €17 per day for as long as the non-filing continues, or to imprisonment for a period not exceeding 12 months or both. Any person who omits any object of tax will be subject to a fine of up to € 3,417 plus the tax due, plus an amount equal to twice the difference between the amount of tax properly imposed
- The public interest rate applicable on late payment of taxes, as set by the Cyprus Tax Department, for all amounts due for the years 2021 and 2022 is 1,75% and as of 1 January 2023 is 2,25% on all completed months.
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