Monday, 3 April 2017

Cyprus announces 2017 NID yield rates, new rules for related-party financing transactions, and CbC reporting rules

For purposes of the notional interest deduction (NID), the Cyprus Tax Authority (CTA) recently announced a list of countries’ interest yields on 10-year government bonds for December 31, 2016, the relevant date for tax year 2017.

The CTA also has informed the Institute of Certified Public Accountants of Cyprus (ICPAC) that they will cease their practice of specified minimum spreads on qualifying related-party financing transactions (based on a 2011 correspondence between the CTA and the ICPAC), effective July 1, 2017. Instead, these transactions will have to be supported by transfer pricing studies.
The Cyprus Minister of Finance on December 30, 2016, issued a decree that introduces a mandatory country-by-country (CbC) reporting requirement for multinational enterprises (MNEs) that generate consolidated annual turnover exceeding €750 million.

Source & more info: PwC