Transfer Pricing – Quality Assurance Declaration

26/09/2024

Further to our previous newsfeeds, the Cyprus Tax Department issued an announcement related to the Quality Assurance Declaration (the ‘Declaration’), which auditors and tax advisors are required to submit in relation to Local Files and Summary Information Tables (SITs) prepared for Transfer Pricing purposes.

 The Declaration needs to comply with the following requirements:

• Confirms that the quality assurance review of the Local File has been completed.
• Includes the results of the Local File quality assurance review and indicate whether these results are satisfactory or not for each category included in the SIT.
• Is signed by a licensed auditor/tax advisor who is a member of ICPAC and who undertook the quality assurance review of the Local File the latest by the deadline of submission of the tax return for the year to which the Local File relates.
• Is submitted in Greek language.
• Is submitted together with the SIT through the Tax For All portal.

 The Tax Department will thoroughly check the information included in the SITs and the quality of the Local Files.

The deadline for the submission of the SITs for the years 2022 and 2023 is on 30 November 2024 and 31 March 2025 respectively. The SIT needs to include information on counterparties (legal name, tax residency and identification number) and on each transaction with such counterparties (type, value, supporting documentation, etc.).

The penalty for non-submission of the SIT is €500 per return whereas the penalty for non-submission of information related to the Local File within 60 days upon request by the Tax Department is from €5.000 to €20.000, depending on the length of the delay.