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