Obligations of a Cyprus Limited Company

Obligations of a Cyprus Limited Company

Accounts and Audited Financial Statements
. Maintain accounting records / bookkeeping procedure based on Cyprus Companies and Tax Law.
. Prepare annual financial statements audited by an independent auditor. This is required by the Tax Laws even if a Company is of small size and it is exempt from audit by the Companies Law.

Group Financial Statements

  • Prepare annual consolidated financial statements audited by an independent auditorifthe Group is notof "Smallsize". This is in harmonywith E.U. Directives. ' A group of "Small size" is determined by certain characteristics
    Corporation Tax -12.5% on the Companv's Taxable Income
  • Acquisition of a Tax ldentification Code (T.l.C.).
  • Submission of annual tax return (lR4) based on the audited financial statements for eacn year.
  • Annual declaration that the Company's shareholders are non-resident and they are not subject to deemed distribution tax on dividends
  • Submission of tax exemption certificate in the case of payment of dividends
  • Submission of annual analytical declaration of employees' deductions

Payment of taxes

  • .Declaration and payment of provisional tax in 2instalments for the tax year (August & December).
  •  Payment of final tax of the year by 1 August of the next year without any penalties.For more details go to Tax calendar


  • VAT registration required by law if the Company:
    - makes taxable supplies or
    - provides zero-rated services to other E,U, businesses (also need toregister for VIES)
    - conducts business in the E.U, and receives services from other E,U, or
    - non-E,U, businesses
  • Voluntary registration is also allowed,

Social Insufance and Pavee deductions

  • Registration with the Social insurance department as an employer if applicable
  • MonthlY payment of Social Contributions for Directors and other employees-lf thecompany' is registered
  • Monthly payment of PAYE for Directors and other employees-if the company is registered,

Reqistrar of Gompanies

  • Submission of the company annual return for the year together with the annual.
  • audited accounts for the previous year (or the consolidated accounts if applicable).
  • Obligation to pay annual levy tax for the amount of Euro 350 (For both active and non active companies).

By: George Michael Managing Director at TOP PRO AUDIT & TAX LTD

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