What changes does the new law introduce?
Cyprus has implemented amendments to its Companies Act to align the Country by Country Report with European Union Directive 2021/2101/EC. These amendments strengthen tax transparency obligations and ensure that companies comply with EU standards on the disclosure of tax information.
Key obligations for companies
- Public disclosure of tax information: Companies must publish data related to income, taxes paid, accumulated profits, nature of economic activities carried out, among others.
- Scope of the regulation: It applies to multinational groups and large companies with consolidated revenues exceeding 750 million euros in the last two consecutive fiscal years. It also extends to medium-sized subsidiaries operating in Cyprus under foreign parent companies that are located outside the EU.
- Deadlines for compliance: Entities subject to the obligation have 12 months from the end of the tax year to file and publish the required information in the defined formats.
Impact of these amendments
The update seeks to improve tax transparency and make it easier for authorities and the public to identify risks of tax avoidance. Companies must prepare for public scrutiny and adjust their tax policies to ensure compliance.
Recommendations for companies
- Review the new legal requirements: Make sure you understand and comply with reporting obligations.
- Strengthen internal preparation: Update your financial and tax data collection and reporting processes.
- Seek professional advice: Consulting with experts in transfer pricing and international taxation can help simplify compliance.
How can TPC Group help you?
At TPC Group we are specialists in transfer pricing and tax compliance. Our team is prepared to guide companies in the correct implementation of the new Country by Country Report regulations.
Contact us and ensure your company’s tax compliance!
Source: Michael Kyprianou & Co LLC
