Category: Audit



12/07/2022

Limited Assurance Review

in 2022, Audit, Law

The House of Representatives have approved amendments to the Companies Law and to the Assessment and Collection of taxes Law to facilitate and ease the obligations of small and medium size enterprises and of individuals.

In summary if the below mentioned thresholds are met the enterprise will be subject to a limited assurance review instead of a full audit.

The thresholds are:

  • Companies that the Net Turnover does not exceed €200.000 and total balance sheet does not exceed €500.000, for at least two consecutive years.  
  • Individuals whose Turnover and any other income from sources defined in articles 5(1)(c), 5(1)(f) and 5(1)(g) of the Income Tax Law are in the range  €70.000 to €200.000, and whose total balance sheet does not exceed €500.000, for at least two consecutive years.

The amendment will enter into force on 1 January 2023 and its provisions apply to the Financial Statements of Companies ending 31 December 2022 or any other later date. 

The above amendments do not apply:

  • Parent Companies that are required to prepare consolidated Financial Statements.
  • Companies which are regulated and supervised by the Central Bank of Cyprus, the Cyprus Securities and Exchange Commission and the Commissioner of Insurance.
  • Companies which acquire or hold a qualifying participation in such companies.

Finally, they have approved a reduction to the penalty for late submission of annual returns relating to the years 2021 and 2022 from €500 to €150 for the period between 9 June 2022 and 31 December 2024 and extended the deadline for the payment of the 2022 annual company levy from 30 June 2022 to 31 December 2022.

We are at your disposal for any clarifications.

Please contact:

George Yiallourides
Managing Director 
T: +35725443132
E: yiallourides@ayca.com.cy 

Panicos Charalambous
Director 
T: +35725443132
E: panicos@ayca.com.cy

06/07/2022

Temporary Tax – Preliminary Self-assessment for the year 2022

in 2022, Audit, Tax

We kindly remind you that under the provisions of the Income Tax Law, every Company must submit to the Tax Authorities by 31st July a preliminary self-assessment, declaring the Company’s estimated Taxable income of the current year as well as the respective Tax payable. The general income tax rate for all companies for 2022 is 12.5%.

Note that the non-submission of such return is considered as submission of zero declaration, that is to say zero taxable income and zero tax.

The estimated Tax payable must be paid in two equal instalments on or before 31st July 2022 and 31st December 2022. Effective deadline, without interest or penalty being imposed, is one month later.

The original declaration can be revised at a later stage before December 31st of the current year. However, the revised Taxable income will be apportioned equally over the two instalments and the difference on the instalments already paid will attract interest at 1.75%.

The declared Taxable income must not be less than 75% of the final Taxable income as determined by the audited Financial Statements otherwise an additional tax of 10% on the remaining tax payable will apply. We remind you that the tax return for 2022 needs to be submitted by 31st March 2024 although interest on the amount due is calculated from 1st August 2023.

In view of the above you are requested to either provide us with your estimated Taxable Income for the year or to provide us with the necessary information to assist you in establishing the estimate.

Please contact:

George Yiallourides                                                                    Yiannis Charalambous                                  
Managing Director                                                                     Tax Manager

T: 0035725443132                                                                      T: 0035725443132                    

E: yiallourides@ayca.com.cy                                                       E: ioannis@ayca.com.cy

 

04/07/2022

Transfer Pricing studies documentation compliance requirements

in 2022, Audit, Tax

On 30th June 2022 the Cyprus Parliament approved the amendments to the Cyprus Income Tax Law with immediate effect for the year 2022, introducing Transfer Pricing (“TP”) studies documentation compliance requirements, in line to the OECD Guidelines as amended from time to time.

To view the guidelines click here.

22/02/2019

IFRS 9 – Financial Instruments

in Audit

IFRS 9 despite the wide perception actually affects not only financial institutions but much more organizations. This is the case especially when an entity has long-term loans, equity instruments or any other financial assets. Even entities with short-term receivables are also affected.

IFRS 9 can affect entities in different ways such as:

  • It increases the volatility of the presentation of the income statement. More assets than before would have to be measured at fair value with any increase or decrease in their fair value to be recognized instantly as they appear in profit and loss.
  • Entities will now have to provide for any possible future credit losses on their receivables (including trade receivables) and loans. This provision shall take place even when a receivable (e.g. loan) is recognised for the first time in the entity’s financial statements; even if the possibility of future credit loss is highly unlikely.
  • IFRS 9 also introduces new disclosure requirements that some entities will have to adopt in order to process the required data needed to be disclosed.

You can find the most significant changes introduced by IFRS 9 by clicking here.

In case you need any further clarifications or assistance on how to adopt your company to IFRS 9, please contact us at: T: +357 25443132
F: +357 25878948
E: info@ayca.com.cy
W: www.ayca.com.cy