Any person that omits or neglects to settle any tax withheld is guilty of an offence. In the event of an individual, the individual shall be liable to a monetary penalty of €5.000 or/and up to 2 years of imprisonment. In the event of a company, the company shall be liable to a monetary penalty of €5.000. In this case, and following the introduction of criminal liability for directors and other executives, they too may be found liable and as such be subject to 20% of tax due or/and up to 2 years of imprisonment in the event where the tax due exceeds €1.700.
For all remaining taxes (i.e. taxes not withheld) the omission or neglect for payment, an offence may be substantiated if the omission or neglect is proven to be carried out fraudulently or wilfully. In the event of a company, apart from the company the directors may be found liable as well.
The submission of tax returns, statements in connection with the entity’s income or any claims for allowance, deduction of relief, incorrect accounts or information, documentation or other related records and declarations, an offence may be substantiated if the above is proven to be carried out fraudulently or wilfully. In the event of a company, apart from the company the directors may be found liable as well.
Criminal liability for directors may be also substantiated for failure to submit tax returns, for failure to keep proper accounting books and records, for failure to submit the annual return to the registrar of companies e.t.c.
For VAT purposes, among other provisions, the following provisions exist within the relevant legislation (In the event of a company, apart from the company the directors may be found liable as well):
Any person that fails to submit a VAT return for a specified tax period within the deadline laid down in Regulations or any person that omits or neglects to settle any VAT liability shown on the VAT return as payable in respect of any period the deadline laid down in Regulations is guilty of an offence and liable to a monetary penalty of €8.543 or/and up to 12 months of imprisonment.
Any person involved in the fraudulent evasion of VAT or carry out actions with the aim of the fraudulent evasion of VAT, either by himself or by any other person, is guilty of an offense and liable to a monetary penalty up to three times the amount of VAT payable or/and up to 3 years of imprisonment.
For Social Insurance purposes, among other provisions, the following provisions exist within the relevant legislation (In the event of a company, apart from the company the directors may be found liable as well):
Any employer or self-employed individual that omits or neglects to settle any liability may be found guilty of an offence and be liable to a monetary penalty of €3.400 or/and up to 1 year of imprisonment. In case of a second or repeated conviction for the same offense the monetary penalty is €5.000 and the imprisonment up to 2 years.
"A combination of tax and non-tax incentives helped Cyprus to be established as an International Business Centre.
Your first option is to relocate your business in Cyprus and use Cyprus for your operations either in Europe or Worldwide. The second general option is to include a Cyprus Company in your structure to get advantage of the tax incentives and its wide network of DDT.
Below, we present the main features of Cyprus Companies with different activities. We will be happy to provide you with our comprehensive advice on tax planning solutions, on request, once we have information about your existing structure, your activities and your needs."