Information about Financial statements and Annual Return for companies incorporated in Cyprus

• The deadline for a company to pay its tax liability without paying any penalties is the 31st of July (example: For the financial year 2021 the tax liability must be paid before the 1st of August 2022).

• The deadline for filing a company’s Tax Return is the 31st of March (example: For the financial year 2021 the Tax Return must be filed before the 31st of March 2023)

• The deadline for filing the company’s first Financial Statements and Annual Return is within 18 months from its incorporation plus 28 days extension period. (example: If a company was incorporated on 1 January 2021 the deadline to file its first Financial Statements and Annual Return is the 28th of July 2022).

• The deadline for filing the company’s next Financial Statements and Annual Returns is within 12 months from the previous years filing deadline. (example: If the first Financial Statements and Annual Return were filed on the 28th of July 2022, then the deadline to file the Financial Statements for the year 2022 and its Annual Return will be the 28th of July 2023).

• Please also note that up to the years 2019 the penalty for the late filing of the Financial Statements and the Annual Return was Euro 20 which we were absorbing and paying it on behalf of the company.

• However regarding the years 2020 and 2021 the penalties have changed. A fixed penalty of Euro 20 and an additional Euro 1 for each day of delay in filing the Financial Statements and Annual Return is imposed on the company, with a maximum penalty of Euro 170.

The provisional tax payments are made in 2 equal instalments during a financial year, first before the 31st of July and the second before the 31st of December.

The estimated profit must be equal or more than 70% of the actual profit for a year, in order for the company to avoid any penalties.

The remaining tax liability must be settled before the 1st of August of the following year.

In case a company’s tax liability is not more than Euro 5.000 – Euro 6.000 during a year however then we do not suggest to our clients to pay this provisional tax since our fee for the preparation of this self-assessment is Euro 600 + VAT (Euro 300 + VAT for each instalment), which will be equal to the 10% penalty that will be imposed by the Tax Office.

Register of beneficial owners
The Department of the Registrar of Companies and Intellectual Property of the Ministry of Energy, Trade and Industry, informs the business community that the operation of the interim solution for registration in the Register of Beneficial Beneficiaries for companies and other legal entities will continue beyond July 31, 2022 and until the implementation of the final solution for which the Department will make an announcement soon.

It is recommended that those companies or other legal entities that have not yet fulfilled their obligations to update the Register of Beneficial Beneficiaries based on the provisions of Directive KDP112/2021 of the Comptroller of Companies, hurry to do so.

With the commencement of operation of the final solution, the provisions of article 11 of the Directive are automatically implemented, which provides for the imposition of a financial burden on the company and each of its officials, for failure to comply with the relevant provisions of the Directive, as well as the provisions of article 61A(10 )(f)(i) of the Prevention and Combating of Money Laundering Law of 2007, which provides that failure to fulfil the obligation to submit information on the beneficial owners of companies and other legal entities constitutes a criminal offense.