With ever increasing regulations and reporting requirements, it is now of even more importance to ensure that Cyprus companies are meeting all of their statutory and other reporting obligations. In order to be fully aware of such requirements, and to avoid unnecessary financial and other penalties, we are outlining below the most typical obligations to consider. Depending on the type, structure and activities of a company there might be more requirements to fulfill and/or some of the ones below might not be applicable.
1. STATUTORY OBLIGATIONS
Annual General Meeting (AGM): Must be held each year and the time between them must not exceed 15 months.
Annual Returns: Within 42 days of the AGM, the Company must complete and file a fully signed copy of the Annual Return with the Registrar of Companies.
Company Annual Levy: Every Company must pay an annual levy of €350. The levy for 2018 is payable by 30th June (otherwise late payment penalties will apply and even a strike off in case of long delay).
2. TAX RELATED OBLIGATIONS
According to their individual circumstances, companies registered in Cyprus will have several reporting and payment obligations arising during the coming year, the main of which are outlined below:
Monthly obligations
· Payment of special contribution for defence withheld on the payment of dividends, interest or rents (where applicable) made to Cyprus tax residents in the prior month;
· Payment of tax withheld in the prior month on payments to non-Cyprus residents;
· VIES – a Recapitulative Statement must be submitted every month;
· INTRASTAT – the INTRASTAT Return must be submitted on a monthly basis.
Quarterly obligations
· Companies registered for VAT are obliged to submit their VAT returns and make any payments due on a quarterly basis.
30 June
· Final date for electronic submission of the 2016 corporation tax return (form T.D.4, formerly known as IR4) for accounting periods ended 31 December 2016 (extended from 31 March)
· Final date for payment of special contribution for defence due for the the first six months of 2018.
31 July
· Final date for submission of the Company’s provisional tax declaration and payment of the first installment based upon the Company’s estimated profits for the year 2018, taxable under Corporation Tax;
1 August
· Final payment date for any remaining Corporation Tax liability due for the year 2017.
31 December
· Final date for payment of special contribution for defence for the second six months of 2018;
· Final date for submission of a revised 2018 provisional tax computation (if applicable) and for payment of the second instalment of provisional tax 2018.
3. EMPLOYMENT RELATED OBLIGATIONS
Monthly obligations
· Payment of tax (PAYE) deducted from employees salary from the previous month;
· Payment of Employer/ee Social Insurance contributions (including social cohesion, redundancy, industrial training and holiday fund contributions, as applicable) deducted from the previous month.
31 July
· Final date for electronic submission of form T.D.7, (formerly known as IR7), reporting the total payroll for 2017.
4. ACCOUNTING & AUDIT OBLIGATIONS
All companies registered in Cyprus must prepare accounts in accordance with the International Financial Reporting Standards (IFRS) and these must be audited in accordance with International Auditing Standards (IAS). Each company should ensure that its accounting records are updated at least every four months.
How we can help you
At Fiducenter we acknowledge the significance of good corporate governance and compliance and we truly care about safeguarding the interests of our clients. We, thus, make sure that deadlines are met and other obligations are respected for companies to which we provide services. It is not by chance that our compliance rates are way above the sector averages. If you believe we may be able to assist in any way, please feel free to contact us.
