To all Self employed individuals
It the context of the Inland Revenue Department’s policy to inform citizens timely of their obligations, you are informed that, in accordance with the provisions of the aforementioned amendment law, as from tax year 2006, all self employed individuals, irrespective of their turnover, deriving income from business (or in the case of individuals not resident in the Republic, deriving income from a permanent establishment in the Republic), from property such as leases and rents as well as goodwill, are obliged to issue invoices and receipts in respect of their transactions and collections, according to the Assessment and Collection of Taxes (Issuing of Invoices and Receipts and Maintenance of Records) Regulations of 1997, (P.I. 29/97).
Self employed individuals with a turnover exceeding £40000 (like companies, irrespective of their turnover), are obliged to maintain accounting books and records, and to submit to the IRD accounts in accordance with generally accepted accounting principles, which are audited by persons who have are permitted to be appointed as auditors of a company, under the provisions of Company Law (Cap. 113). The aforementioned books and records must be kept for a period of at least seven years.
As from tax year 2006, the Director of the Inland Revenue Department has the power, at any time within the seven years, to perform an examination and field audit of all the accounting books, records, invoices, receipts and audited accounts which are maintained, and to obtain extracts and copies of such records and to establish the compliance of the obligation of issuing invoices and receipts.
In accordance with Regulation 29/97, self employed individuals are obliged, irrespective of their turnover, which satisfy the requirements described in the Notification published along with the Regulation 108/2005.
The aforementioned provisions apply to all partnerships irrespective of their turnover.
The Public Instruments mentioned above may be obtained from the official website of the Inland Revenue Departments website at www.mof.gov.cy/ird. Amendment law 135(Ι)/2005 has been published in the Official Gazette of the Republic, number 4051, Appendix Ι (Ι), page 1071-1077 dated 18/11/2005.
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