Updates on Transfer Pricing FAQs from the Cyprus Tax Department
Important Update: New FAQs Issued by the Cyprus Tax Department on Transfer Pricing
We wish to inform you of the latest update from the Cyprus Tax Department (CTD) concerning Transfer Pricing (TP) legislation. On 24 September 2024, the CTD published additional Frequently Asked Questions (FAQs) (#25-#43) on its official website.
These new FAQs provide further clarity and guidance on various TP compliance aspects. You can view the full list of FAQs directly through the CTD’s website under the relevant FAQ section.
Key Highlights
The additional FAQs focus on:
- Clarification on outstanding interest free payable balances
- Transactions between Cyprus based related companies
- Who can carry out the quality assurance audit on the Cyprus Local file
- Guidance on the Quality Assurance Review Confirmation (QARC) issued by licensed firms regarding Local Files
- Overview of the available options compliance options for a Cyprus company with control transaction that are below the required thresholds
These updates are especially relevant for taxpayers preparing or who will soon be preparing their SITs, Local Files, or simplified TP documentation. For those using one of the available safe harbour options, the new guidance offers valuable clarifications.
Reminder:
Taxpayers who are required to prepare a SIT should note the extended deadline of 30 November 2024 for the 2022 tax year. This is the date by which the corporate income tax return (TD4) and SIT must be submitted, along with the necessary TP documentation.
We recommend reviewing these updates and ensuring your compliance procedures are aligned with the latest guidelines. Should you require assistance or have any questions, please do not hesitate to reach out to us.
