AuditPoint

05/10/2023

Important announcement ❗️❗️❗️

12/09/2023

Notice for the submission of beneficial ownership data onto the Register of Beneficial Owners and imposition of fines ⤵️⤵️⤵️


The Department of Registrar of Companies and Intellectual Property has announced that the final solution of the electronic system of the Register of Beneficial Owners is expected to be implemented towards the end of October 2023. In this respect all companies incorporated under The Companies Law Cap. 113, European public limited companies (SE), and Partnerships, including their officers/partners, are urged to submit the details and information of their beneficial owners to the existing interim solution system of the Register of Beneficial Owners by 30 September 2023, if not already done so. This will prevent potential fines, penalties, or criminal proceedings for non-compliance.

With the introduction of the final solution of the system, entities will have a one (1) month window to confirm and complete the data in the existing interim solution system before the migration of all data to the final solution system for all entities. During this month, any requests for exemption of disclosing information as well as grounds for due diligence should be submitted.

At the end of this one (1) month period, non-compliant companies will automatically face fines through the final solution system of the Register of Beneficial Owners.

It is reminded that, irrespective of individual criminal liability or potential prosecution, a corporate or other legal entity (and each of its officers) may incur a fine of €200 for non-compliance. This fine may be accompanied by a daily penalty of €100, with a maximum charge of €20,000. Importantly, an officer of a corporate or other legal entity will be exempt from such fines if they have exercised due diligence in adhering to the provisions of N.188(I)/2007 and Directive P.I. 112/2021, as amended, and the violation is not attributed to their actions, omissions, or negligence.

18/07/2023

𝐏𝐞𝐫𝐬𝐨𝐧𝐚𝐥 𝐈𝐧𝐜𝐨𝐦𝐞 𝐓𝐚𝐱 𝐑𝐞𝐭𝐮𝐫𝐧 (𝐅𝐨𝐫𝐦 𝐓.𝐃.𝟏) 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐭𝐚𝐱 𝐲𝐞𝐚𝐫 𝟐𝟎𝟐𝟐 𝐢𝐬 𝐚𝐯𝐚𝐢𝐥𝐚𝐛𝐥𝐞 𝐟𝐨𝐫 𝐬𝐮𝐛𝐦𝐢𝐬𝐬𝐢𝐨𝐧

On 15th July 2023, the Tax Department of Cyprus announced that the Individual’s Personal Income Tax Return (Form T.D.1) for the tax year 2022 is now available for electronic submission through the TaxisNet online platform. It is noted that the said tax return (Form T.D.1) is addressed to employees and pensioners as well as to self-employed individuals (Form T.D.1 self-employed) with gross annual turnover exceeding EUR 19,500.

A prerequisite for the submission of the Form T.D.1 is the electronic registration with the TaxisNet – Direct Tax system.

It is also relevant to note that the filing deadline of the said Tax Forms, for the tax year 2022, as well as the deadline for the settlement of any tax due, via self-assessment for the same tax year, is by the 2nd of October 2023.

17/07/2023

‼️⤵️⤵️⤵️

13/07/2023

𝐆𝐑𝐄𝐀𝐓 𝐍𝐄𝐖𝐒 𝐅𝐎𝐑 𝐇𝐈𝐆𝐇-𝐒𝐀𝐋𝐀𝐑𝐘 𝐄𝐀𝐑𝐍𝐄𝐑𝐒!
𝐂𝐘𝐏𝐑𝐔𝐒 𝐇𝐀𝐒 𝐒𝐎𝐌𝐄𝐓𝐇𝐈𝐍𝐆 𝐅𝐎𝐑 𝐘𝐎𝐔!

Cyprus, July 2023 – The Tax Department recently amended the law for income tax exemptions (a 50% exemption) for non-residents of Cyprus.

The revised law has backdated effect as of 1st of January 2022 and affects personal income tax declarations for 2022.

The changes concern individuals who were non-residents of Cyprus for a period of 15 years previous to their first employment in the Island, and with an annual income which exceeds €50,000. Before the changes, the law only applied to persons with an annual income of more than €100,000.

A few details and important changes:

• The non-tax residency condition has been extended from 10 consecutive years to at least 15 consecutive years immediately before the commencement of the individual’s first employment in Cyprus.
• The recent changes clearly state that exemptions apply to remuneration FROM employment in Cyprus, where before it was limited only to the remuneration from FIRST employment in Cyprus. This amendment greatly expands the total number of beneficiaries of the provision and allows individuals to qualify for the exemption even if they change their employer within the period of 17 years.
• The exemption applies for a period of 17 tax years or until the provisions of the Article are ended, whichever is the earlier, starting from the tax year of the start of first employment of the individual in Cyprus.
• Individuals who were previously eligible for the 50% exemption of their remuneration from their first employment will continue to benefit from the exemption provided that all the conditions, as they were in effect before the date of the publication of the Amending Law, are met.

Have in mind that employed persons, pensioners and self-employed persons whose total gross income for 2022 exceeded €19,500 must file income tax declarations.

❗️𝐂𝐨𝐧𝐭𝐚𝐜𝐭 𝐮𝐬 𝐚𝐧𝐝 𝐰𝐞 𝐰𝐢𝐥𝐥 𝐭𝐚𝐤𝐞 𝐜𝐚𝐫𝐞 𝐨𝐟 𝐲𝐨𝐮𝐫 𝐢𝐧𝐜𝐨𝐦𝐞 𝐭𝐚𝐱 𝐝𝐞𝐜𝐥𝐚𝐫𝐚𝐭𝐢𝐨𝐧𝐬 𝐚𝐧𝐝 𝐜𝐨𝐧𝐬𝐮𝐥𝐭 𝐲𝐨𝐮 𝐨𝐧 𝐭𝐡𝐞 𝐭𝐚𝐱 𝐛𝐞𝐧𝐞𝐟𝐢𝐭𝐬 𝐚𝐯𝐚𝐢𝐥𝐚𝐛𝐥𝐞 𝐭𝐨 𝐲𝐨𝐮𝐫 𝐬𝐩𝐞𝐜𝐢𝐟𝐢𝐜 𝐜𝐚𝐬𝐞❗️

07/07/2023

06/07/2023

𝙁𝙄𝙍𝙎𝙏 𝙀𝙈𝙋𝙇𝙊𝙔𝙈𝙀𝙉𝙏 𝙄𝙉 𝙏𝙃𝙀 𝙍𝙀𝙋𝙐𝘽𝙇𝙄𝘾 – 𝙍𝙀𝘾𝙀𝙉𝙏 𝘿𝙀𝙑𝙀𝙇𝙊𝙋𝙈𝙀𝙉𝙏𝙎

𝐹𝑜𝓁𝓁𝑜𝓌 𝓊𝓈 𝒻𝑜𝓇 𝓂𝑜𝓇𝑒 𝓊𝓅𝒹𝒶𝓉𝑒𝓈!

𝘼𝙢𝙚𝙣𝙙𝙞𝙣𝙜 𝙡𝙖𝙬 𝙤𝙣 𝘼𝙧𝙩𝙞𝙘𝙡𝙚 ８(23𝘼)

On 30 June 2023, an amending law with regards to Article 8(23A) of the Cyprus income tax legislation was published in the Official Gazette of the Republic of Cyprus. The amending legislation has a retrospective effect, as from 1 January 2022.
As per the amending law, various changes have been introduced with regards to the conditions for eligibility of the 50% exemption from income tax for first employment in Cyprus.
It should be noted that as a result of its retrospective application, special provisions have also been introduced for individuals who were eligible for the 50% exemption under the initial Article 8(23A), as it was in place prior to the publication of the amending law, but do not satisfy all the conditions under the amended Article 8(23A).
1. Analysis of the amended provisions of Article 8(23A)
The amended provisions of Article 8(23A) relate to the following areas:
1.1 Amended definition of "first employment in the Republic"
As per the previous version of Article 8(23A), an individual is deemed to have “commenced first employment in the Republic” when for the first time exercises salaried services in the Republic either to an employer resident in the Republic or to a non – resident employer in the Republic, without taking into consideration occasional full-time or part-time employment in the Republic for a period not exceeding in total 120 days in a tax year.
As per the amending legislation, an individual is now deemed to have “commenced first employment in the Republic” when for the first time, following a period of 15 consecutive tax years whereby the individual has not exercised any employment services in the Republic, commenced to exercise salaried services in the Republic, either to an employer resident in the Republic or to an employer non – resident in the Republic.
1.2 Employment income eligible for the 50% exemption
As per the previous version of Article 8(23A), the 50% exemption is applicable only to employment income with regards to first employment in Cyprus and therefore the exemption cannot continue once first employment is terminated, e.g in cases where a change of employer takes place.
As per the amending legislation, the 50% exemption is available to eligible individuals with regards to income arising from any employment in Cyprus (assuming that they satisfy the requirements for first employment - see point 1.1 above).
1.3 Period of non-Cyprus tax residency prior to commencement of first employment in Cyprus extended to 15 years
As per the previous version of Article 8(23A), an individual should not have been a Cyprus tax resident for a period of at least 10 consecutive years prior to the commencement of first employment in Cyprus in order to be eligible to claim the relevant exemption.
As per the amending legislation, in order for a taxpayer to be eligible to claim the relevant exemption, the individual should not have been a Cyprus tax resident for a period of at least 15 consecutive years prior to the commencement of first employment in Cyprus.
1.4 Special provision introduced for individuals that were eligible for the exemption under the previous version of Article 8(23A)
Individuals that commenced employment in Cyprus prior to the date of publication of the amending legislation of Article 8(23A) (i.e. 30/6/2023) and were eligible for this exemption in accordance with the provisions of the previous version of Article 8(23A), can still continue to benefit from that exemption, provided that all the relevant conditions that were previously in place are satisfied.

30/06/2023

Ищите быстрый и эффективный расчёт зарплат для своих работников по цене, которая Вас приятно удивит? Напишите нам, и мы об этом позаботимся за Вас 📋

Хотим проинформировать, что сумма взносов в фонд социального страхования с 1 января 2024 года будет следующей (в процентах от размера зарплаты наемного рабочего):

8,9% — наемный рабочий
8,9% — работодатель
5,3% — государство

According to the provisions of the Social Insurance Law of 2010, as of January 1st 2024 both employer and employee contributions on insurable earnings to the Social Insurance Fund will increase by 0,6%, from 8,3% applicable today to 8,9%.

29/06/2023

Cyprus – In which sectors can third-country students be employed?

Cyprus – The Minister of Labour and Social Insurance has amended the Decree concerning the employment of Third Country Nationals who are in the Republic with the status of a student, in which specific sectors of economic activity can they be employed, and in which professions.

The change allows students who are in the Republic on October 31, 2022, to also be employed as “food delivery workers“ provided that they secure an employment contract with a specific employer, certified by the Department of Labour, and in which the main terms of employment are clearly indicated.

The student must also present a certificate of full-time studies, a document with the study schedule from a recognized institution of study as well as his/her residence permit. The monthly work schedule of the student must also be communicated to the Department of Labor.

Practical training

During the period from June 1st to October 15th, the employment of hotel/catering/restaurant students in HORECA-related businesses is allowed for internship purposes based on the current policies and procedures.

Finally, where the degree requires it, students of recognized fields of study will be able to be employed for practical training purposes, provided that there is a written agreement between the employer and their educational institution previously submitted to the Department of Labour.

27/06/2023

Cyprus companies: 2023 Temporary tax first instalment ‼️

Companies that expect to have taxable income for the year 2023 must pay the first instalment of the temporary (provisional) tax by the 31st of July 2023.
The tax, calculated as 12.5% on the taxable income, is payable in two equal instalments, by the 31st of July and the 31st of December of 2023. Late filing of the return and payment of the tax will attract interest and penalties.
The aim of payment of the provisional tax is to avoid a 10% “additional tax”.
However, to achieve this, your estimated taxable income must be at least 75% of the final taxable income as it will be determined by your company’s audited financial statements.
May we further remind you that you can revise this temporary assessment before the end of each calendar year.
If you expect that your company will have taxable income for the year 2023, please contact us using the email [email protected] or send us a Direct Message on our page by the 21st of July, 2023, to arrange the payment of the first instalment of the provisional tax.
Finally, please note that the final instalment must be transferred by the 15th of December 2023.
Do not hesitate to contact us directly should you require any further assistance about the 2023 Temporary tax first instalment.

10/06/2023

Contact us and we will submit your tax return for you 🖌️

The cabinet on Wednesday approved a bill proposing tax rebates for energy upgrades to businesses, as well as an extension of the tax deadline for individuals to October 2 and the suspension for another year of the obligation to file a tax return for those earning €19,500 or under. According…

01/06/2023

AUDIT or REVIEW of your Financial Statements❓
As statutory auditors, we provide services for both types of assurance engagements ✅✅

Exemptions from statutory audit requirements in Cyprus for small companies

An important update to the Cyprus Companies Law, Cap 113, has been introduced on 9 June 2022, with the aim of freeing small size companies (as defined) from the heavy burden of compliance with the ISAs (International Standards on Auditing) by exempting them from the statutory audit, which until now was universally required (the Companies (Amendment No.2) Law of 2022 (the ‘’Law’’).. Instead, these companies will be subjected to another simpler type of assurance engagement under different, much less demanding standards.

This amendment, which had been awaited and in the making for very long time, and became active upon publication in the Cyprus Gazette on 24 June 2022 is summarized below.

Companies may submit their financial statements for review instead of audit, by a statutory auditor or statutory audit firm, performed according to the International Standard on Review Engagements (ISRE) 2400, when the company’s net turnover does not exceed the amount of €200,000 and the total value of the assets (gross, not net, i.e. without deducting liabilities) does not exceed the amount of €500,000. It is anticipated that these initial thresholds, which had been the subject of most of the bill’s debating, are likely to be re-visited in the near future and re-considered in the light of early application experience with a view to revising them upwards, so that more companies are enabled to escape the full ISA audit requirement.

It is important to note that the Law includes specific exceptions, notably for companies that are subject to regulation and supervision by certain independent authorities, for parent companies that are required to prepare consolidated financial statements, for subsidiaries whose parent company must prepare consolidated financial statements, and others.

The above is applicable from the 1st of January 2023 for financial statements ending on or after 31 December 2022.