PENALTIES

NOTE:1 A penalty of €17.00 per day for as long as a failure continues is imposed or imprisonment up to twelve months or both. Any person who without any excuse omits any object of the tax from the return shall be liable, on conviction to a fine up to €3,417 plus the tax due in amount equal to two times the difference between the amount of tax properly imposed and the amount of tax that would have been imposed had the assessment been based on the return.

NOTE:2 Interest at the rate of 8% per annum is imposed from the first day after the end of the six month period (interest is calculated daily) until 31/12/09. As from 01/01/10 the rate is 5,35% and 5% from 01/01/11 and onwards.

NOTE:3 Failure to pay any installment of the temporary tax assessment by the due date:

• Interest at the rate of 8% ( 5,35% as from 01.01.10 and 5% from 01/01/11 and onwards) per annum is imposed ( Interest is calculated for complete months)
• If no temporary tax assessment was submitted and an assessment is issued by the Inland Revenue, interest at 8% (5,35% as from 01.01.10 and 5% from 01/01/11 and onwards), per annum is payable on the overdue installment plus an additional penalty of 5% on the whole amount of the temporary tax.
• In addition, a penalty is imposed equal to 10% of the difference between the tax due per the final assessment and the tax per the temporary assessment if the temporary taxable income is less than 75% of the taxable income per the final assessment (interest is calculated for complete months).

NOTE:4 Failure to pay tax by the due date:

• Interest is imposed at the rate of 8% (5,35% as from 01.01.2010 and 5% as from 01/01/11 and onwards) per annum ( Interest is calculated for complete months).
• Any tax due is liable to an additional penalty of 5% in the case where the tax return is not submitted within 30 days after the deadline and payment of the tax due is not made.

NOTE:5 Failure to pay P.A.Y.E and the Defence tax by the due date:

• Interest is imposed at the rate of 8% (5,35% as from 01.01.2010 and 5% as from 01/01/11 and onwards) per annum from the due date and additional penalty of 1% per month as long as the delay continues.
• The total amount of the additional penalty cannot exceed 11% of the tax due (interest is calculated for complete months).

NOTE:6 Late submission of the VAT return:

• Impositions of a penalty of €51.00 per VAT return form.

NOTE:7 Late payment of outstanding VAT

• Penalty at the rate of 10% of the outstanding amount
• Interest is imposed at the rate of 8% (5,35% as from 01.01.2010 and 5% as from 01/01/11 and onwards) per annum on the amount of the penalty ( interest is calculated for complete months)

NOTE:8 Late payment of immovable tax results in the imposition of interest at the rate of 8% (5,35% as from 01.01.2010 and 5% as from 01/01/11 and onwards) per annum from the due date.

NOTE:9 Late payment of social insurance results in the imposition of a cumulative monthly penalty of 3% for each month of delay as long as the delay continues. The total amount of the penalty cannot exceed 27% of the amount due.

NOTE:10 Late submission results in the imposition of penalty equal to €100. This increases to €200 if the execution of the obligation is specifically requested by the Inland Revenue Department.   

NOTE:11 Late submission of VIES results in the imposition of a penalty of €51 for each late month up to 3 months. If the form is not submitted within 3 months a fine up to €2,652 may be imposed.

NOTE:12 Late submission of INTRASTAT results in the imposition of a penalty of €8.00 for each late working day up to 30 working days, a fine up to €2,652 may be imposed.

NOTE:13 Late submission of company's tax return results in the imposition of a penalty of €200.

Note:14 Failure to update accounting books and records within a period of 4 months, from the month the transaction took place, results In the imposition of a penalty of €100 as from 01/01/12 and is payable every 3 months. This applies for self-employed individuals with turnover exceeding €70,000 and companies.

NOTE:15 Failure to comply with the due date of payment of taxes determined by legislation results in the Imposition of an additional 5% charge. This applies to tax assessments issued after 01/10/11 without regard to the tax year.