The tax authority has published additional frequently asked questions (FAQs) numbered 25 – 43 to provide clarity on specific provisions of the new transfer pricing rules in Cyprus.
Notably, FAQ 25 clarifies that taxpayers do not need to consider interest-free payable balances when assessing Article 33(7) threshold or report them in the TSI for 2022 and 2023. However, starting from 2024 and beyond, these balances must be included and reported.
Additionally, the FAQs from 25 onwards provide additional clarification regarding the Tax Identification Number (TIN), required thresholds for the arm’s length principle, controlled financial transactions, and quality assurance audits of the Cyprus Local File and Master File, among others.
