Compliance

Due to the recent austerity measures imposed by the Cyprus government Cyprus company compliance has been tightened and therefore all companies have to be up to date on the filing of annual returns. Prior to the implementation of new measures, the Registrar of Companies had a relaxed approach toward compliance matters.

Failure to submit the annual return could result in the Registrar of Companies imposing a fine and in some circumstances being struck off the register or significant delays in obtaining incumbency or other certificates or executing any changes to a Cyprus company.

Annual return filing is regulated by section 118, 120 and 121. According to section 120, an annual return has to be completed within 42 days after the Annual shareholder meeting. Sections 120 and 121 prescribes that any officer in charge is considered guilty of a criminal offence and shall be liable on conviction of a fine. In addition and irrespective of the provisions of a criminal offence, where company fails to comply with AR preparation and filing, the Registrar of Companies may impose thereto an administrative fine not exceeding €8,500.00

In order to ensure all companies are in good standing and able to operate without impediment Eltoma is now ensuring all filings are made up to date. The fee for the submission of annual return is €125.00 and is payable annually.

Payments for the annual levy can be executed through the Registrar’s website, at the following URL:

Users will be capable of executing the following payments:

Year Amount

2011

€350

2012

€350 up to the 29th of March 2013. (Applicable for companies that haven’t paid for last year or have previously filed for exemption as dormant).

2013

€350 up to the 30th of June 2013.

2013

€385 from the 1st of July 2013 until the 31st of August 2013.

2013

€490 from the 1st of September 2013 until the 30th of November 2013.

 

  • Levy: renewal of company, to be paid in June every year. Requirement by Company House. Failure to do so results in penalties and in striking off the company from the registry of Company House.
  • Corporate taxation: Submission of IR4 and HE32, compulsory requirements by Inland Revenue and Company House. Needs to be done on a yearly basis. In order to submit these forms, book keeping and audit for the company must be done. If the IR4 for a company is not submitted, the company will not be able to request any tax certificates. When the audited accounts are submitted at a later stage, the company pays penalties to Company House and if applicable, interest on the tax amount payable to Inland Revenue.
  • VAT registration: for companies that are registered in VAT authorities, they need to submit a VAT report on a quarterly basis. To prepare this form book keeping must be done.
  • VIES registration: companies that are selling goods or providing services to EU countries are required to register in VIES. VIES declarations are submitted on a monthly basis.

Once a company is registered in VAT & VIES authorities it must submit its declarations on time. Failure to do so results in the payment of monthly and quarterly penalties.

Take the next step, we are here to help.

Register a Cyprus company.
Open a Cyprus bank account.

  Resources:

OECD publishes compliance review for all non-compliant jurisdictions

OECD publishes compliance review for all non-compliant jurisdictions

The OECDs global tax transparency initiative was launched last year in April 2016, with the purpose of encouraging every jurisdiction across the world to commit to implementation of a CRS (Common Reporting Standard) for automatic exchange of information by 2018, and to sign the Multilateral Convention on the exchanging of tax data. A forum on behalf of the OECD has released the results of its review for jurisdictions it considers to be non-compliant.

EU Parliament Committee release findings & recommendations for current offshore taxation measures

EU Parliament Committee release findings & recommendations for current offshore taxation measures

A formal enquiry into the Panamanian law firm Mossack Fonseca has been launched by the European Parliament's Committee, which found gaps in beneficial ownership transparency for trusts and fiduciaries and didn’t meet the EU standard.

2017 G20 summit: Enforcement of taxation highest priority

2017 G20 summit: Enforcement of taxation highest priority

The 2017 G20 leaders’ summit took place in Hamburg last week where the European Commission Council and leaders discussed the priorities and primary projects for the upcoming summit. EC President Jean-Claude Juncker has stated that advancing the global combat against tax evasion is top of the list.

The EC takes action against advocates promoting tax avoidance schemes

The EC takes action against advocates promoting tax avoidance schemes

The European Commission has recommended the implementation of a new regulation regarding companies or intermediaries who promote or design cross-border tax planning schemes will going forward be required to provide full disclosure to the tax authorities of their relevant jurisdiction within five days of offering them to clients.

What are the new Beneficial Ownership reporting requirements for BVI companies?

What are the new Beneficial Ownership reporting requirements for BVI companies?

Going forward, a new regulation will require certain British Virgin Islands companies to gather and retain details of Beneficial Owners with 25% or more of the company’s shareholding rights, with an ongoing requirement to keep the details up to date.

Russian citizens can gain Cyprus tax residency by staying only 60 days on island, whats the catch?

Russian citizens can gain Cyprus tax residency by staying only 60 days on island, whats the catch?

Cyprus is once again working to improve its economic desirability and will be able to increase its alternative business base for Russians with good creditworthiness.

Cyprus tax department releases new guidance on CRS deadlines and the online portal

Cyprus tax department releases new guidance on CRS deadlines and the online portal

The Cyprus Tax Department has released a notification to all Cyprus based Financial Institutions & Service Providers of the new guidance notes on the Automatic Exchange of Financial Account Information and other information relating to the Common Reporting Standard (CRS).

Hong Kong establishes AEOI agreement with Indonesia

Hong Kong establishes AEOI agreement with Indonesia

Last week, Hong Kong finalised and signed an agreement with Indonesia to allow for the automatic exchange of financial information (AEOI) regarding all tax matters.