Giovanis Kouzalis LLC: Providing Expert Guidance in Light of Ministerial Council’s Decision to Abolish Annual Corporate Fees
Excellent news. In a significant development for businesses, the Ministerial Council has announced the abolition of the annual corporate fee of €350, effective immediately. This decision, aimed at providing additional relief to businesses, marks a pivotal shift in fiscal policy.
As G. Kouzalis Law office, lawyers in Cyprus states, it was initially introduced in 2011 as part of fiscal consolidation measures, the annual corporate fee has been a longstanding obligation for businesses operating in Cyprus. However, amidst calls for economic rejuvenation, the decision to abolish this fee underscores a commitment to supporting businesses and fostering economic growth.
During the early stages of governance transition last spring, the Ministry of Finance initially opposed the abolition of the fee. Concerns were raised regarding potential revenue loss, with €40 million in annual revenue projected for 2024. However, after thorough deliberation and advocacy by various parties, the decision to abolish the fee prevailed. The Ministry emphasized the importance of a gradual and phased approach to alleviating the financial burden on businesses, taking into account their turnover.
Despite this favorable decision, businesses must remain vigilant regarding their compliance with past obligations related to the annual fee. Recent data presented to the Parliament highlights a significant number of companies, including many inactive ones, owing approximately €30 million to the state treasury due to non-compliance in previous years.
At Giovanis Kouzalis LLC, we understand the complexities of regulatory changes and are committed to providing expert legal guidance to businesses navigating these transitions. Our team of experienced attorneys is dedicated to assisting clients in understanding the implications of the recent decision and ensuring compliance with evolving regulatory requirements. Whether addressing outstanding obligations or strategizing for future compliance, our firm stands ready to support businesses every step of the way.
For personalized legal assistance tailored to your business needs, contact, Cyprus lawyers, Giovanis Kouzalis LLC today. Let us help you navigate the changing legal landscape and safeguard your business interests effectively.