On 1 February 2024, the Cyprus Tax Department published revised thresholds for what concerns the obligation to prepare a Local File for transactions with related parties (known as “Controlled Transactions”).
On 11 December 2023 Cyprus and France signed a Double Tax Treaty (DTT) which, once it enters in to force, will replace the existing treaty between the two countries, dated back in 1981.
Through an amendment approved by the Cyprus Parliament on 6 December 2023, the Special Contribution for Defence rate on interest income has been reduced from 30% to 17%.
Through a circular issued on 7 July 2023, the Cyprus Tax Department (TD) clarified the method it considers as the most appropriate for determining the arm’s length pricing for financing transactions, including those of a “back-to-back” nature.
The Cyprus Tax Department issued a circular for transactions falling below the threshold for the preparation of a Local File.
The Tax Department announced on 3 May 2023 that the deadline for submission of VIES forms for April 2023 is also extended to 26 May 2023.
The Tax Department announced on 20 April 2023 that the deadline for submission of VAT returns, and payment of any amount due, for the VAT period from 1 December 2022 to 28 February 2023 is further extended to 10 May 2023.
The Directive targets EU tax resident entities that are engaged in cross-border economic activities but have little or no economic substance, known as “shell entities”.
