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.