- The company’s requirements as per Cyprus Companies Law Cap 113 have as follows:
- Annual audited financial statements must be prepared and filed with the Registrar of Companies showing the true and fair picture of the company’s affairs, together with Annual Return.
- Annual levy on Companies; an annual levy of €350 will be payable to the Registrar of Companies by all companies incorporated in Cyprus. This levy is payable by the 30 June each year. It is expected 2018 to be the last year of the specific fee to be paid, unless the parliament decides otherwise.
- Tax and VAT filing Requirements in Cyprus
a) Registration with the Tax Authorities
A company is obliged to register with the tax authorities within 60 days from the day of its incorporation.
b) Registration to VAT
A company is obliged to register with the VAT authorities once its turnover exceeds or is indented to €15.600.
c) Filing obligations with the Tax Authorities
A company is required under the Income Tax Law to file its annual tax return, prepared based on audited financial statements, to the local Tax authorities. The filing date is 15 months after the financial year ending 31 December and the submission is made electronically through its auditors/tax consultants.
Companies are required to have audited accounts and pay tax (12,5% on taxable profits) on a temporary and self-assessment basis.
Corporate entities must also submit a provisional return prior to the 31st July each year based on the estimated current year’s income. The number of provisional tax instalments made by companies is two and these instalments will be due on 31 July and 31 December each year.
A final payment must be made on 1st August of the following year of assessment, (for the tax year 2015 the payment must be made by 1 August 2016), as to bring the total instalment payments to the level of the actual liability due according to the actual tax liability as determined.
d) Filing Obligations and payments of VAT
VAT return is submitted and VAT payable is paid on a quarterly basis forty days after the end of the VAT period e.g. for period January – March that date will be 10th of May
For all the above you will be notified once the deadlines approach.
Further to the above please see the attached the presentation discussed earlier and the KPMG Tax card 2017, which describes the Cypriot tax law and:
- IP regime (where the company’s tax can be reduced to 2.5%), follow the link:https://home.kpmg.com/cy/en/home/insights/2016/10/amendments-to-the-cyprus-intellectual-property-regime.html
- Non- domicile status, thus by the time you become Cypriot tax residence, you will pay no tax in Cyprus for any interest receive from fixed deposits and dividends. Link is: https://home.kpmg.com/cy/en/home/insights/2017/01/tax-alert-procedure-for-claiming-non-domicile.html
- Cyprus tax resident status; the link is: https://home.kpmg.com/cy/en/home/insights/2017/07/amendments-to-the-definition-of-tax-resident-for-individuals.html
- F3.2 form that needs to be completed by yourself which regards to our risk assessment procedures. You are kindly requested to ensure that the attached form under the general title “F3.2 Physical Person Identification Form- Director”, is duly completed, signed and provide us with the below-listed documentation; – Certified National Identification Card or International Passport if Cypriot or EU citizen;
- An original or certified copy of Utility bill/ Tax bill/ Bank statement, not more than six (6) months old
- CV outlining the academic background, employment history and business activities.