On 30 June 2022 the Cyprus
parliament has voted into law the long-anticipated documentation
requirements on transfer pricing (law and
regulations). The law and regulations are aligned with the
recommendations set forth in the Transfer Pricing Guidelines for
Multinational Enterprises and Tax Administrations published by the
OECD.
The documentation requirements apply to Cypriot tax
resident persons and Permanent Establishments
(PE's) of non-tax resident entities for certain
transactions undertaken with related parties. The aim of the new
law and regulations is to ensure compliance of covered entities
with the arm's length principle.
Interested persons are encouraged to read the
informative leaflet that was prepared by the dedicated transfer
pricing team of KPMG in Cyprus and reach out if more information or
assistance is needed.
