Indirect Tax Briefing
As part of the campaign of the Department of Registrar of Companies and Intellectual Property for the compliance of all registered entities with the obligation to submit annual returns along with audited financial statements, as per the provisions of Sections 118. -122. of the Cyprus Companies Law, Cap. 113, we would like to bring to your attention that the Registrar, acting in accordance with Section 327 (6) of the Law, will proceed, with no exceptions, with publications of notice for strike off from the register, of entities that fail to comply with the provisions of the Law, in connection with the submission of their annual returns.
According to the provisions of the Cyprus Companies Law, as amended in 2024, the maximum administrative penalty imposed by the Registrar of Companies for late submission of the Annual Returns with reference date the years 2021 onwards will not exceed the €150 for each violation.
Therefore, the fee for submitting the annual return is as follows:
In case of timely submission (within 28 days from the reference date of the Annual Return)
€20 fee for the submission
In case of late submission:
€20 fee for the submission
€20 penalty fee
Corresponding late submission penalty amounting to €50 (one-time charge) and
€1 for each date that the violation continues.
The total penalty is caped to €150 plus €40 for the submission and penalty fee, total €190.
Overseas Companies
In connection with the submission of the annual returns of Overseas Companies, which, in accordance with Section 350 of the Cyprus Companies Law, Cap 113, are obligated to submit audited Financial Statements with the Registrar of Companies, must also proceed with the submission. The out of pocket expenses for such submission is €40 with no additional penalties.
Who is excepted from the obligation to submit financial statements of an overseas company
An Overseas Company which is a member state of the European Union, which, in accordance with the laws of the said state and in harmonization with the provisions of Directives of the European Union No 2013/34/EU and 2006/43/EU, is exempt, in whole or in part of the obligation to submit audited Financial Statements, shall be excepted from the obligation and is not obliged to submit the financial statements to the Registrar of Companies.
An overseas company that has prepared audited financial statements and has submit them for publication in the country of origin where they have been prepared, according to the same standards as if they were in the Republic of Cyprus, is exempted from the submission to the Registrar of Companies.
In such cases, the overseas company submits to the registrar of companies a certificate signed by a director and the secretary notifying that the company is excluded from such obligation.
We stress the importance to inform all clients for the above obligation.
How can KPMG assist?
For any assistance for the above service, please contact Georgia Yiangou, Senior Team Member, Global Compliance Management Services (GCMS).
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