Information regarding Submission of the Summary Information Table of Controlled Transactions for 2022

Cyprus Tax Department has issued a notice regarding the submission of the Summary Information Table of Controlled Transactions (hereinafter referred to as the “SIT”) for 2022.

Background

SIT is a mandatory annual form submitted to the Tax Department. It provides details of the taxpayer’s transactions with related parties for the tax year, including information on counterparties, their tax residency, types of intercompany transactions (e.g., services, intangibles, financial transactions, sale of goods, and others), and the transaction amounts for each category.

Cypriot taxpayers are required to submit the SIT by the tax return submission deadline for the respective financial year, typically within 15 months after the end of the tax year.

SIT submission deadline: end of February 2025 (for the year 2022) and thereafter on an annual basis.

Penalty for failure to submit SIT: €500.

Additional Requirements (if applicable):

In addition to the SIT, taxpayers shall substantiate all transactions with related parties supported with proper transfer pricing documentation, demonstrating their compliance with the arm’s length principle.

Taxpayers engaged in controlled transactions falling under Article 33 of the Income Tax Law, with a total value exceeding the specified annual thresholds for any of the five transaction categories, are required to prepare a Cyprus Local Transfer Pricing File:

•      Sale/purchase of goods;
•      Provision/receipt of services;
•      Financial transactions;
•      Receipt/payment of licensing fees or royalties;
•      Other

Specified thresholds:

•       €5,000,000 for transactions in the “Financial Transactions” category.
•       €1,000,000 for all other categories (“Goods,” “Services,” “Royalties and Other Intangibles,” “Other”).

Taxpayers whose controlled transactions do not exceed these thresholds are exempt from preparing a Local File but shall adhere to simplified documentation requirements as outlined in tax circular no. 6/2023 issued on 6 July 2023.

How Main Partner Trust can help you with the SIT task?

Main Partner Trust is ready to assist with the preparation and submission of SIT. Please contact your manager for more information.