Every Cyprus company is required to comply with certain tasks in accordance with Cyprus laws.
Below we set out a calendar for the main tasks that are normally applicable to all Cyprus companies.
This is the general list. Depending on specific circumstances, a company may have to satisfy additional tasks.
At Cosmoserve we specialize in assisting our clients satisfy all the applicable tasks.
Company registration at the Department of Registrar of Companies.
Within 60 days of company formation: Register at the Cyprus Tax Office and obtain a Tax Identification Code (TIC).
Start the bookkeeping for the company.
Note: By law, every transaction should be recorded in the books latest within 4 months from the date it takes place. It is strongly recommended for the bookkeeping to be done in monthly cycles).
Depending on the company’s transactions, it will fall in one of three categories in relation to VAT in Cyprus:
a) Be obliged to register
b) Not be obliged to register, but may do so voluntarily
c) Not eligible for registration
Note: Irrespective of the status of the company for VAT in Cyprus, if it is involved in transactions in other EU member states, it may have VAT obligation in those states.
If the company is registered with the VAT and VIES system in Cyprus, it will have to submit its:
- VIES Return monthly, by the 15th day after the end of the relevant month
- VAT Return quarterly, by the 10th day of the month after the end of the month following the relevant quarter. If there is VAT payable for the quarter, it should be paid by the same date.
If the company will employ persons in Cyprus, it will be obliged to:
- register with the Cyprus Social Insurance Office, as an employer;
- arrange for online payment of the tax deducted from employees’ salary (PAYE), Social Insurance and General Healthcare System contributions, not later than the last day of the following month;
- have Employer’s Liability Insurance from the first day of becoming an employer;
- submit annually the Employer’s Return (TD7) to the Income Tax Office, by 31 July of the following year;
- issue Certificates of emoluments (TD 63) to each of its employees in each year which the employee needs to include in his/her Personal Annual Tax Return (TD 1) which has to be submitted to the Tax Office, latest by 30 April of the following year.
Note: if the company will employ persons out of Cyprus it will have to abide by the applicable legal requirements of the country where the employees are located.
- By the end of every month, pay the Special Contribution for Defense and General Healthcare System withheld from payments of dividends, interest or rents made to Cyprus tax residents in the preceding month
- By 30 June, pay the Special Contribution for Defense and General Healthcare System for the first six months of the current year on rents received if such tax is not withheld at source by tenant and on dividends or interest received from sources outside Cyprus.
- By 31 December, pay the Special Contribution for Defense and General Healthcare System for the last six months of the current year on rents received if such tax is not withheld at source by tenant and on dividends or interest received from sources outside Cyprus.
By 31 January, (of current year Year N+1), submit the deemed dividend distribution Form (TD 623), which relates to profits up to the end of Year N-2 (e.g. Profits of 2016 are deemed as distributed by 31/12/2018 and the TD623 must be submitted and settled by 31/1/2019).
Pay the Annual Levy to the Registrar of Companies every year by 30 June of the year.
Pay Temporary Income Tax based on estimated taxable income for a year in two installments, on 31 July and 31 December each year, by completing TD6.
The Board of Directors of the Company prepare financial statements in accordance with the International Financial Reporting Standards (IFRS), as adopted by the European Union and the requirements of the Cyprus Companies Law, Cap.113.
These should be subject to statutory audit by Cyprus licensed independent auditors.
The audited financial statements should be approved by the BoD on a date at least 21 days before the AGM.
Hold its first AGM latest within 18 months of incorporation, and subsequently in every calendar year on a date not exceeding 15 months from the previous AGM.
A notice of 21 days should be sent to all members and persons entitled to receive a notice and attend the AGM.
At the AGM the audited financial statements are presented to the members and are adopted.
Submit the Annual Return (HE32) to the Registrar of Companies as at a date 14 days after the date of the AGM, accompanied by a copy of the audited financial statements.
By 1 August of each year, payment of the final corporation tax for the previous year under self-assessment.
Submit Annual Tax Return (TD 4) to the Cyprus Tax Office by 31 March of the year following year after the relevant year (or by such later date as will be specified by the Tax Office).
For more information on how we can assist you with this matter please contact Mr Antonis Kassapis (tel 00357 22379210) or email firstname.lastname@example.org
The contents of this publication should be considered to be of a general nature only not referring to any particular business. Before proceeding with any action, please request further advice relating specifically to your business. We will be very pleased to be of assistance.
The Calendar is only intended to be a helpful supplement and does not include all the relevant statutory obligations for all companies.
Especially for recently introduced new laws and regulations where the exact practical application is not yet fully known.