The minimum fee is 470 EUR for dormant companies or companies with fewer than 10 transactions in the reporting period
Please note that 19% VAT may be added in invoices to the fees for services rendered.
The calculator allows you to calculate the approximate cost of maintenance of accounting services to support and audit the company.
CalculateAs a member of the European Union (EU), Cyprus complies with the accounting, audit and financial reporting requirements set out in EU regulations and directives transposed into national legislation.
Financial statements must be prepared in accordance with the International Financial Reporting Standards (IFRS) and must comply with national Companies Law Cap. 113.
All Cyprus companies must every year prepare financial statements and tax returns and submit them to the Cyprus Registrar of Companies (the Registrar) and the Tax Department.
The Companies Law requires all Cyprus-registered companies to annually file the following documents:
1) with the Registrar:
As Russian law does not have the concept of an Annual Return, we think it necessary to explain it. The Annual Return is a snapshot of the company’s current structure and is prepared annually. It normally includes: identification data (incorporation date, registered office address); details of directors and their resignations; details of secretaries and their resignations; information about the authorized capital of the company, nominal value of shares, number of shares issued; details of shareholders and transfers of shares.
2) with the Tax Department:
The statements can be in any language, but the Registrar will need to be provided with their translation into either English or Greek.
The Companies Law (section 142) requires all Cyprus companies to prepare financial statements in accordance with the standards approved by the European Union – International Financial Reporting Standards (IFRS).
The financial statements must be kept at the company’s registered office in Cyprus for a period of 6 years from the end date of the last statements.
The Companies Law states that financial statements of all companies must be audited and signed by a registered auditor. A company must at each annual general meeting appoint a certified Cyprus auditor to hold office. The law requires that an audit be conducted in accordance with the International Standards on Auditing (ISA).
An audit is mandatory for all registered companies, regardless of the company size. Even if a company did not trade and is dormant, it must have an annual audit.
Financial statements must be submitted for approval at the annual general meeting and filed with the Registrar of Companies along with the annual return (Form HE32) within 28 days of the general meeting.
The annual return, together with audited financial statements, must be filed within 12 months of the previous annual return, disregarding the calendar year.
The reporting period for a company can be random, but the end date of the reporting period is usually linked to the end of the calendar year (in order to facilitate income tax accounting the reporting period for which is a calendar year). It should also be noted that the duration of the reporting period cannot exceed 12 months (for the first reporting period – 18 months).
Therefore, in practice:
An income tax return (IR4) must be submitted to the Tax Department within 12 months of the end of the reporting period, i.e. until 31 December of the year following the reporting one; this period is extended by 3 months if the return is filed electronically.
Special Defence Contribution (SDC) is administered separately from income tax although calculations of this tax must be included in the tax return IR4.
SDC has a separate tax return form which is filed if the company pays or receives income liable to this tax (chargeable income).
Where there is chargeable income arising from activities between two Cyprus resident companies, the tax must be withheld (paid at source) and the tax return must be completed within a calendar month following the month in which the chargeable income arose.
If a Cyprus resident receives income from foreign sources, the tax return must generally be filed with the Tax Department by 31 December of the year in which the company had chargeable income. The exception is rental income generated by the rent of property. The return for this type of income must be filed by 30 June and 31 December of the year in which the company had chargeable income.
The reporting period for VAT is 3 months (these can be random – for example, February, March, April, and then 3-month quarters) which are selected by the Tax Department. A company is obliged to prepare a tax return and pay tax within 1 month and 10 days (i.e. within 40 days) from the end date of the 3-month reporting period.
INTRASTAT data are submitted if a company buys or sells goods from/to companies registered in other EU member states. An INTRASTAT return must be submitted monthly within 10 days of the end of each month.
VIES information is submitted if a company buys or sells goods and SERVICES from/to companies registered in other EU member states. The reporting period is a month. A VIES return must be submitted within 15 days of the end of the month in which the sale was made.
Late filing carries penalties, and actions may also be taken against the directors of the company who have not fulfilled their duties.
In the case of late filing of a tax return, a company is liable to a fine of 5% of the amount of tax due; the company directors who failed to fulfil their duties can also face fixed fines and have actions taken against them. It should be noted that tax must be paid by 31 July of the year following the reporting year. Late payment of tax is subject to penalty interest.
Late filing of a tax return and late payment of tax carry the following penalties:
Late filing of a tax return and late payment of tax carry the following penalties:
There are also penalties for late registration for and deregistration from VAT, as well as for non-compliance with the reverse charge mechanism.
If a Cyprus company has subsidiaries, it is required to prepare consolidated financial statements.
The following exemptions apply:
1. Small and medium-sized groups may be exempted from preparing consolidated financial statements.
Small groups are company groups consisting of parent and subsidiary companies subject to consolidation, which, when consolidated, do not exceed at least two of the following three criteria at the closing date of the parent company’s balance sheet:
Medium-sized groups are company groups other than small company groups, consisting of parent and subsidiary companies subject to consolidation, which, when consolidated, do not exceed at least two of the following three criteria at the closing date of the parent company’s balance sheet:
2. Groups whose holding or parent companies publish consolidated financial statements.
The exemption from consolidation does not apply to public companies whose shares are listed on a stock exchange. The consolidated accounts of such companies must be prepared in line with Generally Accepted Accounting Principles and accepted by members of the International Organization of Securities Commissions.
