Guide
The Cyprus Company Compliance Calendar
The Cyprus Company Compliance Calendar: short answer
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A Cyprus company files an annual return with the Registrar, an income tax return with audited financial statements, and VAT and payroll returns where registered. The obligations sit with two different authorities on two different timetables, which is why one is so often missed.
| Registrar filing | Annual return, form HE32, with financial statements attached |
|---|---|
| Tax filing | Corporate income tax return with audited financial statements |
| Audit | Required, with a review engagement available to small companies below both thresholds |
| Provisional tax | Estimated and paid in instalments during the year, with a balancing payment after |
| VAT | Periodic returns and VIES statements where registered |
| Dormant companies | Still file. Dormancy reduces the content, not the obligation |
Every Cyprus structure on this site assumes the company stays in good standing. This is what that actually requires, stated as obligations rather than as reassurance.
Two authorities, two timetables
The obligation most often missed is missed because founders assume one filing covers everything. It does not, and the two authorities do not stand in for each other.
The Registrar of Companies maintains the corporate record: who the directors are, where the registered office is, who holds the shares, and the annual return confirming it. Filing here keeps the company in good standing as a legal entity.
The Tax Department assesses tax. Filing here settles what the company owes.
A company can be fully current with the Tax Department and facing strike-off proceedings at the Registrar, or the reverse. Both timetables have to be run, and in practice that is what an administrator is for.
What has to be filed
The annual return, form HE32. Filed with the Registrar with the financial statements attached. It confirms the company's officers, registered office and share capital as at the return date. Late filing attracts penalties, and a sustained failure can lead to the company being struck off the register.
Audited or reviewed financial statements. Every Cyprus company needs an assurance engagement carried out by a licensed statutory auditor, and it is a precondition for the tax return rather than an optional exercise.
What changed in 2026 is the level of that engagement. For financial years beginning on or after 6 February 2026, a private limited company whose net turnover is below 300,000 euro and whose total gross assets are below 500,000 euro, in each case for two consecutive financial years, may opt for a review engagement under ISRE 2400 instead of a full statutory audit. A review provides limited assurance through enquiry and analytical procedures rather than the detailed testing an audit involves, and it is ordinarily cheaper.
The relief is not open to everyone below the thresholds. Public companies, public-interest entities, regulated financial institutions and companies required to prepare consolidated financial statements remain within full audit whatever their size. And a review engagement is still performed by a licensed statutory auditor, so this is a lighter obligation rather than an exemption from assurance altogether.
The corporate income tax return. Filed with the Tax Department, supported by those audited statements, which is why the audit sits on the critical path for both filings.
Provisional tax. Cyprus asks companies to estimate the current year's taxable profit and pay it in instalments during that year, with a balancing payment afterwards. Underestimating the liability by more than the permitted margin attracts an additional charge, so the estimate is a judgement with a cost attached rather than a formality.
VAT returns and VIES statements, where the company is VAT registered. These run on their own periodic cycle, independent of the annual filings.
Employer returns and payroll, where the company has employees, including any officer taking a salary.
What founders get wrong
Assuming a dormant company is exempt. It is not. A company with no trading activity still files an annual return and still files with the Tax Department. Dormancy reduces what the filings contain, not whether they are made.
Not budgeting for the audit. It is mandatory, it is a professional fee, and it recurs annually. A structure costed on formation fees alone understates the running cost by the largest single item.
Treating provisional tax as an estimate without consequence. The additional charge for a material underestimate is real, and it applies to companies that had a better year than they forecast.
Discovering transfer pricing late. A company with an intra-group royalty or loan may have documentation obligations alongside the ordinary filings. See transfer pricing in Cyprus for the thresholds.
Where certainty can be obtained in advance
Two mechanisms exist for a company that wants a position confirmed rather than assumed.
Advance tax rulings. The Tax Department operates a ruling procedure under which a taxpayer can apply for a written position on the treatment of a proposed transaction, against a fee and to a target response period. It is used most often for IP Box qualification, reorganisations and cross-border structures where the amount at stake justifies the certainty.
Advance pricing arrangements, for transfer pricing specifically, where a company wants its intra-group pricing methodology agreed rather than tested later.
Neither is necessary for ordinary trading. Both are worth the cost where a structure depends on a particular reading and the consequence of being wrong is large.
Common questions
Does a Cyprus company need an audit?
Every Cyprus company needs an assurance engagement by a licensed statutory auditor, and it is a precondition for the tax return. For financial years beginning on or after 6 February 2026, a small private company below 300,000 euro net turnover and 500,000 euro total gross assets for two consecutive years may opt for a review engagement instead of a full audit.
What is the HE32?
The annual return filed with the Registrar of Companies, with financial statements attached. It confirms the company's officers, registered office and share capital, and late filing attracts penalties.
Does a dormant company still have to file?
Yes. A company with no activity still files its annual return and still files with the Tax Department. Dormancy affects the content of the filings, not the obligation to make them.
What is provisional tax?
An estimate of the current year's taxable profit, paid in instalments during that year with a balancing payment afterwards. Underestimating by more than the permitted margin attracts an additional charge.
Does filing with the Registrar cover the Tax Department?
No. They are separate authorities with separate deadlines and separate filings. A company can be current with one and in default with the other.
Technical definition
Annual obligations comprise the Registrar of Companies annual return with financial statements attached, the annual levy where applicable, the corporate income tax return supported by audited financial statements prepared under IFRS, provisional tax payments in instalments during the year, and VAT and employer returns where the company is registered for them.
Practical implications
An assurance engagement by a licensed statutory auditor is required. For financial years beginning on or after 6 February 2026 a small private company below both size thresholds for two consecutive years may opt for a review engagement instead of a full audit. Late filing with the Registrar attracts penalties and, if sustained, can lead to strike off.
Common misconceptions
Two recur. That a dormant company has no obligations, when it still files. And that the Registrar and the Tax Department share information such that filing with one satisfies the other, when they are separate authorities with separate deadlines.