SIT Submission Deadline Extended to 31 May 2025
Cyprus Extends SIT Submission Deadline for 2022 Tax Year – What You Need to Know
The Cyprus Tax Department has announced an extension for the submission of the Summary Information Table (SIT) and Tax Return Form (for related party transactions) for the 2022 tax year. The new deadline is 31 May 2025, providing businesses additional time to comply with tax reporting obligations.
Who Needs to Submit the SIT?
As per Cyprus tax laws, from tax year 2022 onwards, all Cyprus companies and Permanent Establishments (PEs) of non-tax resident entities engaging in controlled transactions must submit the SIT together with their Income Tax Return (Form TD4).
What is the SIT and Why is it Important?
The SIT is a key tax compliance document that summarizes intercompany transactions between related parties. It ensures adherence to transfer pricing rules and provides evidence that transactions are carried out at arm’s length.
Key points about the SIT:
- The SIT summarizes intercompany transactions with related parties carried out during the relevant tax year.
- It is a critical component of demonstrating that all related-party transactions are conducted at arm's length (at market rates).
- All Cyprus companies (and Permanent Establishments (PE’s) of non-tax resident entities) need to complete and submit the SIT if Controlled Transaction/-s arise within a tax year, regardless of the transaction value.
- Controlled Transactions refer to financial dealings or arrangements involving Controlled Entities (entities directly/indirectly owned by at least 25%), that are subject to transfer pricing regulations.
- These transactions fall into the five categories of Goods, Services, Royalties and Fees / Other Intangible Assets, Financial Transactions, and Other.
Penalties for Non-Compliance
Failure to submit the SIT on time or provide accurate information may result in a EUR 500 fine and/or increased tax authority scrutiny.
How We Can Help
Navigating SIT compliance can be complex. Our team offers:
✔ Preparation and compilation of the SIT in accordance with Cypriot tax regulations.
✔ Verification of transaction details to ensure compliance.
✔ Submission of the SIT to the Cyprus Tax Department on time.
We recommend early preparation to ensure a smooth process. Contact us today for guidance on your SIT submission - enquiries@consulco.com