We inform you that the Department of Registrar of Companies, in the context of measures taken by the Government to support companies/businesses affected by the restrictive measures imposed to limit the spread of Coronavirus, has announced the following measures:

1. The publication process is suspended in the Official Gazette of the Republic for three months notice for strike off of non-compliant companies, until January 2021.

2.Payment of Annual Levy € 350:

The option to pay the annual levy for 2020 is extended until December 31, 2020 without imposing an additional charge of 10% and 30%.

3. Imposition of a fee for late submission of forms to the Registrar of Companies:

In co-operation with the House of Representatives, the implementation of the financial charge for the late submission of statutory forms to the Registrar of Companies will be postponed to 2021.

4. Submission of Financial Accounts of 2020:

The Financial Accounts dated 01/01/2020 to 31/12/2020 may be submitted to the Department until 28/01/2021, without charge of € 20 for late registration.

Requirements of the Board of Directors – Reporting

1.  Annual General Meetings (AGM): A Company must hold its first AGM within 18 months of the date of incorporation. Thereafter, an AGM must be held each year and the time between them must not exceed 15 months.
2. Annual Returns: The Company must annually submit within 42 days of the AGM Audited Financial Statements together with the Annual Return (H.E. 32) with the Registrar of Companies (ROC). Non-compliance will result to financial penalties.
3. Annual Company Levy: Every Company must pay an annual levy to the ROC in the amount of €350 (Three hundred fifty Euros) for the company to be in good standing order and to remain on the Register of Cyprus companies. Failure to pay such levy will result in financial penalties 10% for a delay of 2 months, 30% between 2-5 months.

In case the abovementioned b & c requirements are not met the ROC will initiate procedures to strike-off the company where they will initially send a 3 month warning letter to comply with the above requirements and in the event that the company does not comply, the ROC will proceed to stick off the company.

A company may be reinstated in the Registry of Companies if it applies to the District Court of its jurisdiction, provided that it meets certain criteria, read more in our Publications section on the matter.

Tax registration & compliance

1. A company must register with the Cyprus Tax Authorities within 60 days from its incorporation. Any changes that may affect the records of the Inland Revenue register must be submitted within 60 days from the date of change. (Failure to comply will result to heavy financial penalties).
2. All companies registered in Cyprus are required to pay Corporate Tax and Special Contribution for Defense.
3. The Company’s Tax Returns from IR4 must be filed no later than 31st December of the year ended. Continued non-compliance will lead to legal actions against the company and its officers.
4. Companies that meet the criteria for VAT registration must register with the VAT Authorities within 30 days from the date at which the requirement to register exists. VAT returns are submitted on a quarterly basis.
5. The VAT Information Exchange System (VIES Form) must be submitted every month for those companies that provide goods or services within the 15th day of every following month.
6. Social Insurance contributions must be paid monthly for all employees working in the Republic of Cyprus.

Record Keeping

All Minutes and decision making of the company must be kept at the Registered Office Address of the company and shall be open for inspection by any person during normal business hours.

Changes to the Corporate Structure, Board or Members of the company need to be submitted and updated at the ROC within a specific deadline as per the Law regulating Companies, Cap. 113. In the event that the relevant deadlines are exceeded the company shall need to obtain a court order for an extension of time that shall be submitted with all other relevant documents.

Audit & Accounting obligations

1. All Companies must prepare and maintain accounts as per the International Financial Reporting Standards & International Auditing Standards. In the event of non-compliance criminal charges may be brought against the firm and its officers.
2. For income tax and VAT purposes, companies are obliged to keep accounting records for six years from the year ended.

By monitoring all corporate deadlines, we safeguard your company’s interests from incurring needless and potentially heavy fiscal penalties.

• Remains in Cyprus for at least sixty (60) days during the tax year
• Carries out any business in Cyprus and/or is employed in Cyprus and/or holds an office to a person resident in Cyprus at any time during the relevant tax year,
• Maintains a permanent residence in Cyprus which includes leasing.

The main purpose of the proposal is to allow an individual to become a tax residence in Cyprus provided that the individual does not stay in any other country for one or more periods, which exceed 183 days in total and who is not a tax resident in any other Country within the relevant tax year.

Cyprus Tax Rates

A tax residence of Cyprus will be taxed on their worldwide as per the below rates:

Tax Base (EUR)                                        Tax rate (%)
Up to €19.500                                               0%
€19.501 to €28.000                                     20%
€28.001 to €36.300                                    25%
€36.301 to €60.000                                    30%
Over €60.000                                               35%

Contribution to Special Defence
Cyprus tax residents which are not domiciled in Cyprus will be exempt from special defence contribution which is levied on dividends, interest, and rental income.

The link to the Double Tax Treaty and Protocol here.

Removal of Cyprus from the Russian “Blacklist”

The signing of the Cyprus – Russian Tax Treaty resulted in the abolition of Cyprus from the Blacklist of the Russian Federation. This meant that the dividends received by the Russian Companies with Cyprus Registered subsidiaries would qualify for Russia’s dividend participation exemption.

Amendment of Article 13 of the Cyprus-Russia Double Tax Treaty

The Government of Cyprus and Russia came to an agreement for postponing the application of the Protocol amending Article 13 of the Double Tax Treaty between Cyprus and Russia for the Avoidance of Double Taxation with respect to taxes on income and on capital.

The Protocol signed on the 7^th of October 2010 provided for taxation of capital gains upon disposal of shares of companies deriving more than 50% of their value from immovable property, in the country where the immovable property is located.

It has been established that over the years Cyprus and Russia have developed strong ties in political, economic, cultural and religious level as Russia is remains a major economic partner.