Penalties for late submission of HE32 Annual Return
Penalties for late submission of HE32 Annual Return have been reduced. In a previous publication we examined the penalties for late filing in Cyprus and they ran up to €500 for the late submission of HE32. The current penalties have been in play since 2018 when the Cyprus Companies law was amended.
In the last 4 years we have seen service providers and clients scumbling to put together 4, 5, or more years worth of financial statements in order to avoid these hefty fines. The practice was frowned upon by the business and the clients which saw their annual fees multiply.
Several companies, run into impossibilities to submit on time due to several discrepancies between the law and the practice adopted by the Department of the Registrar of Companies and Intellectual Properties in Cyprus.
With a current pool north of 200.000 entities, and in the first 6 months of the year, only 60.000 of them submitting annual returns, the reduction of the penalties is a welcomed step for the business and clients.
Number of Cypriot Entities 2022
Number of annual returns submitted 2022
What are the penalties for late submission of HE 32 Annual Return in 2022
On the 30th of June 2022 the Parliament of Cyprus adopted legislation changing the penalties for late submission of HE32 Annual Return. The amendment of the Companies Law is valid for the Annual Returns within the years 2021 and 2022 until 2024. If a company has paid a penalty exceeding the amount of €150 then the company may apply for a refund of the difference.
The penalties have been reduce from a maximum of €500 to a maximum of €150
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