Imposition of Annual Trade License Fees on Legal Entities

February 7, 2020
Posted by: Elias Christofi & Co Ltd
Category: Corporate & Fiduciary Services

After a City Council decision made on the 26th September 2019 the Limassol Municipality has announced that it has implemented the provisions of the Municipalities Law 111/1985 pursuant to Articles 104 and 105 and has decided to impose annual trade license fees on legal entities having a registered office and /or having their work performed and/ or managed by law firms and/ or accounting/ audit firms and / or offices providing secretarial services, as follows:

For legal entities working independently, an annual fee of €150,00
For legal entities in a group of companies, an annual fee of €85,00 per legal entity
For inactive legal entities (dormant companies), an annual fee of €50,00

The annual trade license fees are payable by 31 March 2020.

RECOURSE

Any person who objects to the imposition of the professional tax, has the right to file a recourse to the Administrative Court of the Republic of Cyprus under Article 146. Paragraph 3 of Article 146 of the Constitution provides that a recourse shall be made within 75 days of the date when the decision or act was published or, if not published and in the case of an omission, when it came to the knowledge of the person making the recourse.

The content of this article is intended to provide a general guide to the subject matter. Every case is different and specialist advice should be sought about your specific circumstances.

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