The Republic of Cyprus is currently an international financial center with the most favorable tax regime in the European Union. The jurisdiction has a well-developed legal, business, and professional infrastructure. Cyprus has a large number of signed double taxation avoidance treaties.

Cypriot legislation requires companies to submit audited financial statements to government authorities annually. The reporting documents must comply with the requirements of the Republic of Cyprus Companies Law and the International Financial Reporting Standards (IAS/IFRS) in force in the European Union.

What reports need to be submitted

A company registered in Cyprus must submit the following reports annually:

Financial statements with an independent auditor's report and a tax return to the Cyprus Inland Revenue Department;

Financial report and Annual Return to the Cyprus Registrar of Companies. The Cyprus Registrar of Companies accepts the Annual Return only if it is accompanied by a copy of the financial statements with the auditor's report.

The Cyprus Companies Law requires an annual mandatory audit of each company. The audit is conducted in accordance with International Standards on Auditing.

When to submit the report

All companies must submit financial statements to the Tax Department and the Company Registry within 12 months after the end of the tax period. The financial year for all companies is from January 1 to December 31, with the exception of the first year:

Companies registered in the first half of the calendar year (before July 1) prepare their first financial statements for the period from the date of the company's registration until the end of the current year. That is, the first financial statements of such companies are due for submission already in the next year after registration (for the incomplete previous year);

Companies registered in the second half of the year (after July 1) provide the first report for a period of up to 18 months (that is, for the remainder of the year in which the company was registered, and for the entire following year).

How to submit a report in Cyprus

IT OFFSHORE specialists will assist with the preparation and submission of financial statements, as well as with the audit, including interaction with the Cypriot government authorities.