In accordance with the legislation in Cyprus, all persons (natural or legal) that are resident in Cyprus and carry out a Business, must keep and maintain proper books and records, which are updated no later than four months from the month that the transaction was made.

Additionally such records should be ready and available, in case a tax investigation will be performed by the authorities such as, the Inland Revenue Department, the VAT Service and the Social Insurance Services.

The maximum duration that a person is obliged to keep accounting records was reduced from 7 years to 6 years on 12 October 2012.