Cyprus: Proposed increase to Local file thresholds

New thresholds would be raised to €5 million for financial transactions and €1 million for all other categories of controlled transactions

February 2, 2024

The Cyprus tax department on 1 February 2024 published a letter proposing updates to the thresholds for preparing a Local file for the 2022 tax year.

The new thresholds, which apply to Cypriot tax resident persons and permanent establishments (PEs) of non-tax resident entities engaged in controlled transactions, would be raised to €5 million for financial transactions and €1 million for all other categories of controlled transactions. The current threshold is €750,000 for all the categories of controlled transactions.

Therefore, the applicable thresholds for the 2022 tax year for preparing a Cyprus Local file would be:

  • Financial transactions: € 5 million
  • All other categories:  €1 million

The Cyprus tax department has emphasized that entities exempt from the obligation to prepare a Cyprus Local file must still comply with the provisions of Circular 6/2023 and maintain minimum transfer pricing documentation for their controlled transactions.

Read a February 2024 report prepared by the KPMG member firm in Cyprus

Thank you!

Thank you for contacting KPMG. We will respond to you as soon as possible.

Contact KPMG

Use this form to submit general inquiries to KPMG. We will respond to you as soon as possible.

By submitting, you agree that KPMG LLP may process any personal information you provide pursuant to KPMG LLP's Privacy Statement.

An error occurred. Please contact customer support.

Job seekers

Visit our careers section or search our jobs database.

Submit RFP

Use the RFP submission form to detail the services KPMG can help assist you with.

Office locations

International hotline

You can confidentially report concerns to the KPMG International hotline

Press contacts

Do you need to speak with our Press Office? Here's how to get in touch.

Headline