{"id":3140,"date":"2022-07-05T11:57:40","date_gmt":"2022-07-05T11:57:40","guid":{"rendered":"https:\/\/r02fi4ct8m.wpdns.site\/new-rules-for-transfer-pricing-as-of-1-january-2022\/"},"modified":"2022-07-05T11:57:40","modified_gmt":"2022-07-05T11:57:40","slug":"new-rules-for-transfer-pricing-as-of-1-january-2022","status":"publish","type":"post","link":"https:\/\/www.gstaxconsultants.com\/el\/new-rules-for-transfer-pricing-as-of-1-january-2022\/","title":{"rendered":"New Rules for Transfer Pricing as of 1 January 2022"},"content":{"rendered":"<p>The Cyprus Parliament, on 30th of June 2022, voted amendments to the Income Tax Law introducing detailed rules for the Transfer Pricing legislation. The legislation is <strong>effective from 1 January 2022, <\/strong>and it actually incorporates the OECD\u2019s TP Guidelines into the Cyprus legislation.<\/p>\n<p><!--more--><\/p>\n<p><strong>When the TP legislation applies <\/strong><\/p>\n<p>The new TP rules apply to transactions between related parties (either legal persons or individuals).<\/p>\n<p>For the purposes of the legislation, it is clarified that two companies are considered as related parties if the same person (and its related persons) or a group of persons directly or indirectly:<\/p>\n<ul>\n<li>hold 25% of the share capital or voting rights of both companies, or<\/li>\n<li>have the right to at least 25% of both companies\u2019 income.<\/li>\n<\/ul>\n<p>A company is considered as related to a physical person (and its related persons), if that person(s):<\/p>\n<ul>\n<li>hold 25% of its share capital or voting rights, or<\/li>\n<li>have the right to at least 25% of the company\u2019s income.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><strong>TP requirements <\/strong><\/p>\n<p>The TP legislation requires the preparation of a TP study related to the intercompany transactions to justify compliance with the arm length\u2019s principles (subject to a small size exemption where the intercompany transactions do not exceed the level of EUR\u20ac750.000 per annum per category) and the submission of a summary information table about the intercompany transactions and general information for the group, the business activities and the TP method used in the said transactions. 2<\/p>\n<p>The Tax Department is expected to issue a relevant circular providing guidelines about the required information needed to be kept for the TP Documentation (both the Master File and the Cyprus Local File).<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Deadline for compliance <\/strong><\/p>\n<p>Same deadline with the Income Tax Return of the relevant year. Will be submitted together.<\/p>\n<p><strong>&nbsp;<\/strong><\/p>\n<p><strong>Penalties <\/strong><\/p>\n<p>Late submission of required information will give rise to penalties ranging from EUR\u20ac500 (for non-submission of the summary information table) to \u20ac20.000 (for non-submission or late submission of the TP Documentation File to the Tax Department, upon request).<\/p>","protected":false},"excerpt":{"rendered":"<p>The Cyprus Parliament, on 30th of June 2022, voted amendments to the Income Tax Law introducing detailed rules for the Transfer Pricing legislation. The legislation is effective from 1 January 2022, and it actually incorporates the OECD\u2019s TP Guidelines into the Cyprus legislation.<\/p>","protected":false},"author":7,"featured_media":3139,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_robots_primary_cat":"","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[61],"tags":[],"class_list":["post-3140","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-articles"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.gstaxconsultants.com\/el\/wp-json\/wp\/v2\/posts\/3140","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gstaxconsultants.com\/el\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gstaxconsultants.com\/el\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gstaxconsultants.com\/el\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gstaxconsultants.com\/el\/wp-json\/wp\/v2\/comments?post=3140"}],"version-history":[{"count":0,"href":"https:\/\/www.gstaxconsultants.com\/el\/wp-json\/wp\/v2\/posts\/3140\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.gstaxconsultants.com\/el\/wp-json\/wp\/v2\/media\/3139"}],"wp:attachment":[{"href":"https:\/\/www.gstaxconsultants.com\/el\/wp-json\/wp\/v2\/media?parent=3140"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gstaxconsultants.com\/el\/wp-json\/wp\/v2\/categories?post=3140"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gstaxconsultants.com\/el\/wp-json\/wp\/v2\/tags?post=3140"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}