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.

How Can We Help

Please contact us to share any questions you have about the above topic

Contact details

Tel. +357 22 340000

Email: [email protected]

The authors expressly disclaim all and any liability and responsibility to any person, entity, or corporation who acts or fails to act as a consequence of any reliance upon the whole or any part of the contents of this publication.

Accordingly, no person, entity, or corporation should act or rely upon any matter or information as contained or implied within this publication without first obtaining advice from an appropriately qualified professional person or firm of advisors, and ensuring that such advice specifically relates to their particular circumstances.