A. INTRODUCTION

On 24 May 2024, the Cyprus Tax Authorities published an announcement regarding the
new requirement for auditors to submit a declaration of quality assurance review of the
Cyprus Local Files.

B. BACKGROUND

On 30 July 2022, the Cyprus Parliament voted to introduce Transfer Pricing Regulations in Cyprus, effective from 1 January 2022. The Transfer Pricing Regulations require Cyprus taxpayers involved in related party transactions exceeding EUR 5.000.000 in the financing category and EUR 1.000.000 in other categories to prepare a Cyprus Local File by the tax return and SIT submission deadline.

The SIT submission must be completed electronically via the Tax For All (TFA) portal by the tax return deadline, which is 31 March.

A licensed auditor is required to undertake a quality assurance review of the Local File
before the tax return and SIT submission deadline.

C. BRIEF POINTS TO NOTE

On 24 May 2024, the Cyprus Tax Authorities announced that the company’s licensed
auditor is obliged to submit the declaration of quality assurance review of the Local File.

This declaration must:

a. Confirm that the quality assurance review of the Local File has been completed;

b. Include the results of the Local File and indicate whether these results meet the requirements or not for each category outlined in the SIT.;

c. Be signed by an auditor who is an ICPAC member and who undertook the quality assurance review of the Local File by the tax return and SIT submission deadline;

d. Be submitted only in Greek; and

e. Be submitted via the Tax For All (TFA) portal, together with the SIT