Each and every Cypriot company must once every year to file a return with the Registrar of Companies and Official Receiver (the “Registrar”) known as the Annual Return. Failure to file the Annual Return may result in penalties.
The below shall be annexed to the Annual Return to be submitted to the Registrar along with all the documents presented in the general meeting including:
- Audited financial statements
- Director’s report and
- Auditors report in accordance to the provisions of Articles 141-142 of the Companies Law, Cap.113 (the “Law”).
In the event that the Annual Return is not submitted in the timeframe set accompanied by the Financial Statements, the Registrar has reserved the right to act in accordance to the provisions of Article 327 of the Law and to proceed with fine and/or strike-off the company. Submission of the Annual Return with the Financial Statements will incur additional charge (currently the charge is €20 per year per company) plus any further penalties the Registrar may decide to impose.
The Registrar has given notices to companies and further has made announcements of companies to be struck-off in the Official Gazette of the Republic of Cyprus. In such cases, the companies have 3 months from the date the announcement is made in order to fully comply with submissions (i.e. submit Annual Returns up to year 2014 with Financial Statements up to 2013).
Please note that strike-off from the Registrar does not remove any liability to the Tax Department.
Tax resident companies have an obligation to prepare and submit their annual tax returns (IR4) to the Tax Authorities by 31 December following their year-end. The Company Income tax Return (IR4) must be signed by a registered auditor. Additionally and pursuant to ss. 141-142 of the Cyprus Companies Law the directors of the company shall cause to be kept books of accounts which are considered necessary for preparation of the financial statements and shall cause to be made a complete set of financial statements as prescribed by the International Accounting Standards.
If you have questions please do not hesitate to contact your CPM administrator, CPM accountant or CPM Relationship Manager.