Key Steps for Submitting the Summary Information Table (SIT) in Cyprus
Under Cypriot tax regulations, companies are required to submit the Summary Information Table (SIT) alongside their Income Tax Return Form, starting from the tax year 2022 onwards. The SIT is a crucial document that outlines intercompany transactions with related parties, ensuring compliance with transfer pricing rules and demonstrating that these transactions are conducted at arm's length. In this post, we’ll guide you through the key steps to prepare and submit the SIT for your Cyprus-based business.
The SIT provides a summary of intercompany transactions with related parties carried out during the relevant tax year, ensuring compliance with the Transfer Pricing Documentation Regulations introduced in Cyprus. This is a critical component of demonstrating that all related-party transactions are conducted ‘at an arm's length’, or in other words, ‘at market rates’.
More specifically, all Cyprus companies (and Permanent Establishments (PE’s) of non-tax resident entities) need to complete and submit the SIT, as long as ‘Controlled Transaction(s)’ arise within a tax year and irrespective of the value of the said Controlled Transaction(s).
‘Controlled Transactions’ transactions refer to financial dealings or arrangements involving ‘Controlled Entities’ (i.e. entities directly / indirectly owned by at least 25%), typically within a multinational enterprise (MNE) group, that are subject to transfer pricing regulations. The said transactions need to be included in the below categories:
1. Goods
2. Services
3. Royalties and Fees / Other Intangible Assets
4. Financial Transactions
5. Other
The SIT must be submitted to the Cyprus Tax Department along with the Income Tax Return Form for 2022 by the statutory deadline of 28th February 2025. Failing to submit the SIT accurately and on time may lead to penalties or increased scrutiny from tax authorities.
Our Services Include:
- Preparation and compilation of the SIT in line with Cypriot tax regulations.
- Verification of transaction details and ensuring compliance with transfer pricing rules.
- Submission of the SIT to the Cyprus Tax Department by the required deadline.
For assistance with the preparation and submission of the Summary Information Table (SIT), or any other enquiry, please reach out to us at enquiries@consulco.com.