Introduction On 6 July 2023 the Cyprus Tax Department issued a circular (6/2023) that introduces simplification measures (simplified transfer pricing documentation and option to apply safe harbor rates) for taxpayers that are exempted from the obligation of preparing a TP Local file. The simplification measures apply as from 1 January 2022. These simplification measures relate to: These are further explained below. Further on 1 February […]
On 30 June 2022, Cyprus has introduced provisions for implementation of transfer pricing regulations in Cyprus by amending the current Cypriot Income Tax & Assessment and Collection laws. The effective date of the TP legislation is the 1 January 2022. The main purpose of the introduction of the TP legislation is the alignment of the Cypriot Tax laws with OECD guidelines against Base Erosion and […]
The Cyprus Tax office announced the 10-year government bond yield rates as at 31/12/2020 for a number of countries. These rates increased by 5% (the reference rate) can be used for calculating the notional interest deduction on new equity introduced in the business (01/01/2015 onwards). The choice of country depends on where the new equity has been invested. The NID is restricted to 80% of […]
The provisions of the Cyprus Tax law for the treatment of intangible assets have been amended on 14/08/2020, retrospectively from 01/01/2020. The amendments as explained below they enhance the attractiveness of the regime by: abolishing any tax on the gain realized on the disposal of the intangible assets (even on the capital allowances claimed as tax deduction) and; provide flexibility to taxpayers on the claim […]
