i. The Local File which contains detailed information about the local business of the tax payer, including the description and the documentation of related-party transactions. The Local File should be prepared by Cypriot tax resident companies, Cypriot tax resident companies with a foreign branch, Cypriot branches of non-Cypriot tax resident companies being engaged in related-party transactions with an accumulated amount during the tax year more than €750,000. The Local File is subject to Quality Assurance Review (sign-off) by a person who has practicing certificate of ICPAC. Preparation deadline the same like the Income Tax Return and submitted to the tax authorities upon request within 60 days. Penalty imposed for late submission of up to €20,000 based on the days passed.
ii. The Master File contains high level of information about the international business operations of a multinational group and should meet the requirements set in the OECD such as 1) Consolidated Revenue more than €750 million and 2) The Ultimate Parent Entity or Surrogate Parent Entity of the group is a Cyprus Tax resident Company. Penalty imposed for late submission of up to €20,000 based on the days passed.
iii. The Summary Information Table is form that should include the taxpayers related party transactions. The categories of transactions is Goods, Services, Royalties and Other Intangibles, Financing Transactions and others. The Summary Information Table is applicable to all taxpayers that are engaged in related party transactions and there is no threshold. The information should be submitted to the tax authorities on an annual basis, same like the Income tax return. Penalty of €500 for late or non-submission.