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Cyprus Tax Updates: Extension of Company Income Tax Return (TD4) submission for the year 2022 for taxpayers with related party transactions

Cyprus Tax Updates:
Extension of Company Income Tax Return (TD4) submission for the year 2022 for taxpayers with related party transactions

 

The Tax Department of the Republic of Cyprus announced the extension of the filing deadline for:

  1. the Company Income Tax Return (TD4) for the tax year 2022; and
  2. the Summary Information Table (SIT) for related party transactions for the year 2022.

The Tax Department informed that, in accordance with paragraph 2 of the Regulatory Administrative Act (RAA) 59/2024, the deadline for the submission of the following has been extended to 30 November 2024:

  1. The Company Income Tax Return for the tax year 2022 for a person which, in accordance with the provisions of the Section 33(10) of the Income Tax Law of 2002 (118(I)/2002), as amended, has the obligation to submit a Summary Information Table (SIT) for related party transactions, and
  2. The Summary Information Table (SIT) for related party transactions, in accordance with paragraph 5(a) of the RAA 314/2022 for the year 2022.

It is important to note that the SIT can only be submitted via the Tax For All (TFA) portal and that non-compliance with the deadline entails administrative penalty of €500.

 

Increase of materiality thresholds for the preparation of the Cyprus Local File

It is also worth noting that the Tax Department announced that the materiality thresholds for the tax year 2022 onwards for the preparation of a Cyprus Local File are increased from the previous threshold of €750.000 to:

  • €5.000.000 for related party transactions in the category of financing transactions; and
  • €1.000.000 for other categories of related party transactions (goods / services / intellectual property / other).

 

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