The Nicosia Municipality, by exercising its rights pursuant to articles 104 and 105 of the Municipalities Law (Law 111/1985), has recently announced that the applicable rates for the 2020 annual professional license fees that will be imposed to legal entities having their registered office and/or their work performed and/or managed by law firms and/or accounting/audit firms and/or other firms providing secretarial services within the municipal boundaries of Nicosia.
More specifically, the relevant announcement provides for the imposition of a professional license fee as follows:
i. Annual fee of EUR 200,00 to active legal entities (with the exception of regulated companies providing secretarial/fiduciary services and companies being part of a group of companies – ref: point iii and iv below);
ii. Annual fee of EUR 100,00 to inactive/dormant legal entities;
iii. Annual fee of EUR 100,00 to regulated companies providing secretarial/fiduciary services pursuant to Law 196(I)/2012; and
iv. Annual fee of EUR 100,00 to legal entities being part of a group of companies.
Based on which of the above categories each company falls, an invoice will be issued in the name of the company which is payable by 11th of December 2020 to the Nicosia Municipality.
It must further be noted that, pursuant to section 108 of the Law, in case a legal entity fails and/or otherwise neglects to proceed with the relevant payment, it shall be liable for a criminal offence and be subject to a fine of 10% of the chargeable amount.
In light of the above, we strongly advise that companies arrange for the settlement of the aforementioned fee, as per the methods of payment and within the timeframes indicated on the relevant invoices issued by the Municipality.
Should you require any clarifications and/or any support on the above, please do not hesitate to contact us by email.
14 October 2020: Imposition of annual professional license fee on legal entities.
by: Chloe Stephani