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HE32 Annual Return vs Financial Statements: What's the Difference?

Cyprus companies must file both an HE32 Annual Return (company info at the Registrar) and audited Financial Statements (tax accounts). Different deadlines, recipients, and purposes — explained clearly.

Updated 6 March 20266 min read

One of the most common sources of confusion for new Cyprus company owners is the difference between the HE32 Annual Return and the Financial Statements. They sound similar but are completely different obligations, filed to different authorities, at different times, for different purposes.

The HE32 tells the Registrar of Companies who your directors and shareholders are. The Financial Statements tell the Tax Department how much profit you made. The TD4 is the tax return that bridges the two. All three are mandatory, and all three have different deadlines.

The Three Annual Filings: A Quick Overview

FilingWhat It IsWho Receives ItDeadlinePortal
HE32 Annual ReturnCompany information updateRegistrar of CompaniesWithin 28 days of incorporation anniversaryAriadni (efiling.drcip.gov.cy)
Financial StatementsAudited annual accountsRegistrar + Tax Department15 months after year endAriadni + TAXISnet
TD4 (IR4)Corporate tax returnTax Department15 months after year end (typically same as above)TAXISnet

The HE32 Annual Return

What It Contains

The HE32 is a snapshot of your company's basic information as of the filing date:

  • Full name and registration number of the company
  • Registered office address in Cyprus
  • Details of all directors (name, nationality, address, date of appointment)
  • Details of all shareholders (name, number of shares, percentage)
  • Authorised and issued share capital
  • Details of charges (mortgages, loans) registered against the company

When It Is Due

The HE32 must be filed within 28 days of the anniversary of incorporation. If your company was incorporated on 15 June 2024, the HE32 is due by 13 July 2025, 2026, etc.

This is the date most commonly missed, because owners confuse it with the end of the financial year or the audit deadline.

Who Files It

Your company secretary typically handles HE32 filing. Confirm this is included in their service agreement.

Cost

The Registrar charges a fee for the HE32:

  • Filed on time: approximately EUR 20-30
  • Filed late: higher fees plus potential penalties

What Happens If You Miss It

Late filing triggers Registrar penalties. Persistent failure to file can result in the company being struck off the register — effectively dissolved. If your company is struck off, you lose your company number, registered history, and must re-incorporate.

Financial Statements (Audited Accounts)

What They Contain

The annual financial statements are a full set of accounts:

  • Balance sheet (assets, liabilities, equity)
  • Profit and loss statement (income, expenses, net profit/loss)
  • Cash flow statement
  • Notes to the accounts
  • Directors' report
  • Auditor's report

They are prepared under IFRS (International Financial Reporting Standards) for all Cyprus companies.

Who Prepares and Signs Them

  1. Your accountant prepares the draft accounts from your bookkeeping records
  2. A registered auditor (ICPAC member) reviews, tests, and signs the audit opinion
  3. The directors approve the accounts by signing the directors' report

When They Are Due

Financial statements must be filed with the Registrar of Companies within 15 months after the end of the financial year. For a 31 December 2025 year end, the deadline is 31 March 2027.

In practice, the Tax Department often extends deadlines. But do not rely on extensions — prepare on time.

Cost

The audit is the most expensive part. See our Cyprus accountant fees guide for current pricing. Typical range: EUR 1,000-3,000 for a simple active company.

The TD4: Corporate Tax Return

The TD4 (also called IR4) is the annual corporate income tax declaration filed on TAXISnet:

  • Declares the company's taxable profit for the year
  • Calculates corporation tax due (15% rate from 2026)
  • Applies deductions (expenses, NID, IP Box if applicable, losses carried forward)
  • Offsets provisional tax already paid

The TD4 can only be filed after the audit is complete, because it is based on the audited figures. The auditor typically assists or the accountant prepares the TD4 from the audited accounts.

Penalty for late TD4: Similar to other tax returns — interest at 1.75%/year plus 10% on unpaid tax.

Summary: The Annual Filing Timeline

For a company with a 31 December financial year end:

MonthAction
January-FebruaryProvide records to accountant; auditor begins fieldwork
March-JuneDraft accounts prepared; audit conducted
July-SeptemberAccounts approved by directors; TD4 filed
Within 28 days of incorporation anniversaryHE32 filed (separate, year-round depending on date)
15 months after year end (31 March)Final deadline for accounts to be filed with Registrar
31 JulyProvisional tax first payment due
31 DecemberProvisional tax second payment due

Find Cyprus accountants who can manage all three filing streams at CyprusDesk.


Disclaimer: Filing deadlines can change due to government extensions. Always verify current deadlines with your accountant or the Registrar of Companies. Find qualified Cyprus accountants at CyprusDesk.

Frequently Asked Questions

What is the HE32 Annual Return in Cyprus?
The HE32 is a filing made to the Registrar of Companies (via Ariadni portal) that updates the company's official records: directors, shareholders, registered address, and share capital. It must be filed within 28 days of the company's incorporation anniversary each year.
What are Financial Statements in a Cyprus context?
Financial Statements are the annual audited accounts — balance sheet, profit and loss statement, cash flow — prepared in accordance with IFRS (or Cyprus GAAP for small companies) by the company's accountant and then audited by a registered auditor.
What is the TD4 and how does it relate to financial statements?
The TD4 (also called IR4) is the annual corporate income tax return, filed on TAXISnet. It is based on the audited financial statements and declares the company's taxable profit and corporation tax payable. The TD4 is filed after the audit is complete.
What is the deadline for audited financial statements in Cyprus?
Financial statements must be submitted to the Registrar within 15 months of the financial year end. For a 31 December year end, the deadline is 31 March of the following year — though the Tax Department often grants extensions.
Can I file the HE32 without having the financial statements ready?
Yes. The HE32 is a company information update and does not require the financial statements to be complete. They are completely separate obligations with different deadlines.
What happens if I do not file the HE32 on time?
The Registrar of Companies levies penalties for late HE32 filings. Persistent non-compliance can result in the company being struck off the register (dissolved).
Do all Cyprus companies need audited financial statements?
Yes. Unlike many other countries, Cyprus has no small company exemption from the audit requirement. All active Cyprus-registered companies must have their annual accounts audited.
Last updated: 6 March 2026. This guide is for informational purposes only and does not constitute professional tax or legal advice. Always verify critical deadlines with a qualified ICPAC professional.