On 30 June 2017, the Cyprus Commissioner of Taxation issued the Interpretive Circular No. 3 relating to the new rules governing the tax treatment of intra-group back-to-back financing arrangements.
On 1st of January 2019, the Economic Substance (Companies and Limited Partnerships) Act, 2018 (the “Act”), which requires the establishment of adequate “economic substance” for legal entities that fall within its scope, came into force in the British Virgin Islands (“BVI”). Regulations and guidelines which will provide clarifications for the implementation of the Act are going to be issued. However, it is expected that these regulations and guidelines will not be available until March 2019.
Αll Cyprus companies regardless if they are dormant or not, have an obligation to prepare and file audited financial statements to both the Registrar of Companies and the Tax Authorities. All companies to be up to date and in good standing should prepare and file Financial statements until 2018. Companies that were incorporated in the second half of 2018 will prepare financial statements together with 2019.
To be able to proceed, we need you to send us all the documents of the company to complete the bookkeeping and send them for audit and the preparation of the financial statements of 2018, until the end of February 2019.