From the Management and Staff of AuditLine Ltd, we extend our warmest wishes for a blessed and peaceful Easter.

Following the Cyprus Tax Reform effective from 1 January 2026, the Tax Department has introduced stricter administrative penalties for tax non-compliance.

A significant update to the Companies Law, CAP. 113, has been passed by the House of Representatives in respect to companies’ submission of financial statements for review instead of audit. 

In accordance with a letter issued by the Cyprus Tax Department (CTD) to the Institute of Certified Public Accountants of Cyprus (ICPAC), the guidance as to the minimum profit margins the CTD would be willing to accept in back-to-back loan transactions (“the back-to-back regime”) will be abolished as of 1 of July 2017.

We would like to inform you of the below important changes in relation to Social Security and National Health System (GESY) contributions and the personal income Tax.