CYPRUS COMPANY ACCOUNTING

All content presented here is for information purposes only. 

 

 

Accounting in Cyprus is based on International Accounting Standards (IAS). With EU Membership, Cypriot companies have adapted to International Financial Reporting Standards (IFRS). 

 

Cyprus companies are required to maintain and submit annual accounts that comprise income reporting, expenditure reporting and profit/loss estimates. 

 

Annual financial statements include: 

 

  • A profit / loss statement

  • A balance sheet

  • A cash flow statement 

 

The tax year is typically 1 January to 31 December of each year. Some companies, however, have a different VAT reporting schedule, based on the date of their registration. Most Cyprus companies also have the choice to combine an abbreviated first year with full second year accounting in order to simplify the accounting schedule. 

 

Exceptional attention is paid to VAT accounting and social security costs. Companies should make all efforts to comply with reporting deadlines for Cyprus VAT and cyprus social insurance. 

 

The Cyprus Registrar of Companies is increasingly adapting to open documentation standards. It is now possible to view Cyprus company financial accounts online.

 

Accountants in Cyprus can be members of the Institute of Certified Public Accountants of Cyprus (ICPAC). This organization regulates the sector and provides for standards and training. 

 

Your Cyprus accountant will be handling a wide range of tasks, including: 

 

  • Monthly VIES reporting of VAT

  • Monthly social security payments 

  • Quarterly VAT reporting and payments

  • Semi-annual and annual profit tax payments

  • Annual expenditure and income reporting

  • Other support to government authorities

  • Bank account reconciliation. 

 

While there are a wide number of accountants available for work in Cyprus, investors in Cyprus should meet with several to determine the quality of services and customer focus. Key issues when selecting a Cyprus accountant include: 

 

  • The number of staff available for work and their qualifications; 

  • Language ability;

  • The experience with the specific sector of business operations; 

  • The IT / accounting system used, and the reports it can generate; 

  • Additional IT tools, including use of online calendars, dropbox, task management and equivalent productivity applications; 

  • The physical location of the accountant; 

  • Their contact with regulatory authorities;

  • Their ability to provide a full range of services; 

  • Their real international business experience.

 

As with standard business practice in all countries, is extremely important to frequently check the operations and filing results of Cypriot accountants, as quality standards and customer focus can sometimes vary.