Navigating Cyprus Transfer Pricing Rules: SIT Filing Requirements, Deadlines, and Penalties
From the 2022 tax year onward, all companies in Cyprus, as well as Permanent Establishments (PEs) of non-resident entities that engage in controlled transactions (transactions with related parties), are obligated to file the Summary Information Table (SIT) along with their Income Tax Return.
The SIT is a snapshot of all intercompany transactions with related parties which records details such as legal names, tax residencies, tax identification numbers, the values of the transactions and more.
The SIT filing aims to ensure compliance with Cyprus transfer pricing regulations and that transactions are executed at arm’s length principle.
Deadlines for the Summary Information Table (SIT) and Tax Return Form Filings are;
- For the tax year 2022 is extended up to 31 May 2025
- For the tax year 2023 is extended up to 30 November 2025
In case of non-compliance with the above deadlines, applicable monetary fines are;
- SIT late filing: €500,
- Corporate Income Tax Return late filing: €100
Timely preparation and submission of tax documents is crucial for businesses to stay compliant and avoid any financial penalties. It ensures that all required information is accurately reported and submitted within the set deadlines, helping to maintain good standing with tax authorities and prevent any potential fines or increased scrutiny.
For further information and clarifications, please contact us via email at info@zambartaslegal.com or via telephone at +357 22262108