Having spent over 15 years assisting people with their businesses in Cyprus, one thing that has always been very hard to explain is (soon to be was!) the need for a low turnover business, operating via a limited company, to have a full statutory audit.  

Finally, it appears that what was a barrier to doing business in Cyprus is now being lifted. Great news for some, but not yet for everyone. 

In June 2022, the House of Representatives in Cyprus voted into law important amendments in order to ease certain obligations of Cyprus companies and individuals. The most attractive for us is the instruction of a ‘limited assurance review’.

Limited assurance review – an overview

The House of Representatives has approved amendments to the Companies Law and to the Assessment and Collection of taxes law. These amendments are designed to simplify the procedure of auditing the Financial Statements of small and medium-sized enterprises. 

Entities that meet the qualifying criteria thresholds will be able to opt for a limited assurance review of their Financial Statements, rather than a full audit – saving time and money.

Companies whose net turnover and total Balance Sheet do not exceed €200.000 and €500.000 respectively, for at least two consecutive years.

The amendment enters into force on 1 January 2023 and its provisions apply to the Financial Statements of companies ending on 31 December 2022 or any later date. 

It should be noted that the above amendments do not apply to parent companies that are required to prepare consolidated Financial Statements and companies that are regulated and supervised by the Central Bank of Cyprus, the Cyprus Securities and Exchange Commission (CYSEC) or the Commissioner of Insurance, including companies that acquire or hold a qualifying participation in such companies. 

While this may be a small step, when compared to similar thresholds and requirements (in the UK for example), it is a step in the right direction and a welcome one at that!

For more information on how we can help your business/your international clients, or to set up a meeting, please contact us at care@accesstaxaccounting.com