ARTICLE · 14 MARCH 2024

Navigating Cyprus' Transfer Pricing Landscape: Updated Thresholds

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In continuation of our article issued in September 2023, in an important announcement on February 1, 2024, the Cyprus Tax Department has paved the way for a significant shift in the tax landscape...

CyprusTax

Christos Tsaousis

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In continuation of our article issued in September 2023, in an important announcement on February 1, 2024, the Cyprus Tax Department (CTD) has paved the way for a significant shift in the tax landscape of Cyprus, directly impacting businesses engaged in controlled transactions. This change, communicated to the Institute of Certified Public Accountants of Cyprus and other stakeholders, signifies the Ministry of Finance's decision to amend the exemption thresholds for the obligation to prepare a Cyprus Local File.

What's Changing?

Previously set at EUR 750,000, the thresholds for exemption have been notably increased to:

EUR 5,000,000 for controlled transactions categorized under financial transactions.

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