On the 9th June 2022, the House of Representatives passed amending Law No.2 of 2022 (the ‘’Law’’), amending the Cyprus Companies Law. The purpose of the amendment is to simplify the procedure of certifying (auditing) the financial statements of small and medium-sized enterprises. Companies that satisfy the thresholds discussed below will be able to submit their financial statements for a review, as opposed to an audit, by a statutory auditor or audit firm as per the Auditors Law of 2017. The amendment was considered necessary for reducing the administrative burden and unnecessary costs on SMEs and audit firms alike.
The Law, which is to have effect from the 1st January 2023, applies to companies whose net turnover and total balance sheet (i.e. the total value of assets without deducting liabilities) do not exceed the limits of €200,000 (Two Hundred Thousand Euros) and €500,000 (Five Hundred Thousand Euros), respectively.
It is understood that companies may submit their financial statements for review only in cases where, at the date of closing of the balance sheet, they have not exceeded or ceased to exceed the limits of the two criteria mentioned in the above paragraph for at least two consecutive years.
The above does not apply to parent companies that are required to produce consolidated financial statements and companies which are regulated and supervised by the Central Bank of Cyprus, the Cyprus Securities and Exchange Commission and the Superintendent of Insurance, as well as companies which acquire or hold a qualifying holding in such companies.
We expect the publication of the Law with the Official Gazette of the Republic of Cyprus for additional information and details as to this amendment.
The content of this press release is valid as at the date of its first publication. It is intended to provide a general guide to the subject matter and does not constitute legal advice. We recommend that you seek professional advice on your specific matter before acting on any information provided. For further information or advice, please contact Christina Tifa at 0035725363685 or via email at email@example.com