ARTICLE · 21 JULY 2023

Transfer Pricing – Circular 6/2023

KPMG in Cyprus

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On 6 July 2023, the Cyprus Tax Department released a new Circular (6/2023) titled "Simplification measures for persons that are exempt from the obligation to maintain a Cyprus Local File".

CyprusTax

George Markides

Costas Markides

Michalis Loizides

Volodymyr Serdechniuk

Michalis Fiakkou

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On 6 July 2023, the Cyprus Tax Department released a new Circular (6/2023) titled "Simplification measures for persons that are exempt from the obligation to maintain a Cyprus Local File".

The Circular provides guidance to persons which are exempt from the obligation to prepare a Cyprus Local File with regards to the minimum transfer pricing documentation which is required to be maintained to support the arm's length nature of their transactions with related parties (controlled transactions).

In addition, the Circular introduces optional simplification measures that can be used by such persons for certain controlled transactions.

Minimum transfer pricing documentation requirements

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