Cyprus Tax Department has published on the web page a section concerning Frequently Asked Questions (FAQs) in connection to Transfer Pricing (TP) requirements. This update clarifies the exemption thresholds and reporting requirements.
The above effectively means that all taxpayers should perform their controlled transactions under the arm’s length principle supported by proper TP. Failure to do so may result in additional tax liabilities, tax audits and or material penalties.
Any TP study should follow OECD guidelines which in essence requires the appointment of qualified professionals to fulfill this obligation.