Cyprus introduces increased financial penalties for tax violations

Cyprus has implemented a significant increase in financial penalties for tax violations as part of its tax reform effective January 1. The administrative fine for businesses failing to accept credit cards has risen to €6,000, up from the previous €4,000. This mandate applies to retail, services, catering, and leisure sectors to combat tax evasion and protect public revenue. For daily continuing violations, the charge has increased from €17 to €20. The penalty for omitting income from tax returns has reached €5,000, while breaches of invoicing regulations are also now punishable by €5,000. Late submission charges for individuals are set at €150, for small companies at €250, and for large entities at €500. These charges double if non-compliance continues after a deadline set by the tax commissioner. The objective of these changes is to strengthen tax compliance and act as a deterrent.