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 Cyprus income tax office has recently issued the application Guidance nu 4/2020 dealing with the application of the relevant articles of the law on tax residency and PE considering Covid 19 pandemic. As per the Guidance the period from 21 March 2020 to 9 June 2020 is determined as the time period were restrictions on travelling in/out of Cyprus applied and as such this […]
