The Cyprus Tax Authorities (CTA) recently informed the Institute of Certified Public Accountants of Cyprus (ICPAC) via a letter that with effect from 1 July 2017 they will cease their practice of specified minimum spreads on qualifying related-party financing transactions that was based on 2011 correspondence between the CTA and the ICPAC.
The letter notes that as from 1 July 2017 all related-party financing transactions will have to be supported by Transfer Pricing (TP) Studies prepared by independent experts and will have to be based on the relevant OECD standards. Further guidance is expected from the CTA on the application of this new practice.
To read the Newsletter click here:-PWC N-3-2017