Cyprus Updates Its Country-by-Country Reporting Regulations

January 29, 2025

New Law Amendments

Cyprus has implemented amendments to its Corporate Law to align Country-by-Country Reporting with the Directive 2021/2101/EC of the European Union. These amendments strengthen tax transparency obligations and ensure that companies comply with EU standards on tax disclosure.

Key Obligations for Enterprises

  1. Public disclosure of tax information: Companies must publish data related to income, taxes paid, accumulated profits, and the nature of economic activities carried out, among others.
  2. Regulatory Scope: It applies to multinational groups and large companies with consolidated revenues exceeding € 750 million in the last two consecutive fiscal years. It also extends to medium-sized subsidiaries operating in Cyprus under non-EU foreign parent companies.
  3. Compliance deadlines: Entities affected by the obligation have 12 months from the end of the fiscal year to file and disclose the required information in the defined formats.

Amendments’ Effects

The update aims to improve tax transparency and help the authorities and the public identify the risks of tax avoidance. Companies should prepare for public scrutiny and adjust their tax policies to ensure compliance.

Recommendations for Enterprises

  • Review new legal requirements: Make sure to understand and comply with reporting obligations.
  • Strengthen internal preparation: Update your financial and tax data collection and filing processes.
  • Professional advice: Consult with Transfer Pricing and international tax experts, which can assist in simplifying compliance.

TPC Group Advice

At TPC Group, we are Transfer Pricing and tax compliance specialists. Our team is at your disposal to guide companies in the correct implementation of the new Country-by-Country reporting regulations.

Contact us and ensure your company’s tax compliance!

 

Source: Michael Kyprianou & Co LLC