Amendments to the Transfer Pricing Thresholds in Cyprus

On 1 February 2024, an official letter issued by the Tax Commissioner amended the Transfer Pricing (TP) limits of reportable transactions for the preparation of TP documentation (Cypriot TP local file) as follows:

• The threshold of the Finance category is set to €5,000,000 (from €750,000)
• The threshold for all other categories is set to €1,000,000 (from €750,000)

Please note that these are applicable from 2022. The provisions of Circular 06/2023 continue to be in effect.

This update is a continuation of our previous article Transfer pricing legislation in Cyprus: Five things to know.