On 30th June 2022 the Cyprus Parliament approved amendments to the Income Tax Law, introducing detailed Transfer Pricing (TP) requirements into the Cyprus tax legislation. The amendments will enter into force when published in the Official Gazette and will have retroactive effect from 1st January 2022.

The new TP rules impose documentation requirements for certain transactions undertaken with related parties (“controlled transactions”) and are expected to provide clarity as to the proper and adequate documentation of controlled transactions, so that taxpayers can demonstrate adherence to the arm’s length principle.

More details regarding new TP rules can be found by clicking here.