The Commissioner of Taxation has announced the increase of the thresholds for Local File obligation for the tax year 2022.

The relevant thresholds for the tax year 2022 are therefore amended as follows:

• The threshold for the category of financing transactions between related parties increases from €750.000 to €5.000.000.
• The threshold for all other categories of transactions between related parties increases from €750.000 to €1.000.000.

It must be noted, that although the above thresholds have been officially announced by the Tax Commissioner and apply for the year 2022, the procedures for the legislative changes have not yet been completed. Note also that for transactions that do not exceed the threshold for Local File obligation, documentation is still required but in a simplified format as described in the Tax Circular 6/2023 as explained in our tax alert no. 07/2023.

Should you need any additional information or specific services related to the subject matter, you may directly contact our tax team for further assistance.

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Source https://www.icpac.org.cy/zePortal/WebFiles/SELK/WebDocuments/Announcements/2024/%CE%91%CE%9D%CE%91%CE%9A%CE%9F%CE%99%CE%9D%CE%A9%CE%A3%CE%95%CE%99%CE%A3/%CE%A4%CE%BC%CE%AE%CE%BC%CE%B1%20%CE%A6%CE%BF%CF%81%CE%BF%CE%BB%CE%BF%CE%B3%CE%AF%CE%B1%CF%82%20%CE%91%CE%BD%CE%B1%CE%BA%CE%BF%CE%AF%CE%BD%CF%89%CF%83%CE%B7.pdf