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NEWS & ANALYSIS
Cyprus Raises Local File Thresholds
Practical Implications for SMEs and Their Advisors As part of its 2026 tax reform, Cyprus has increased the thresholds that trigger a full transfer pricing Local File obligation under the Income Tax Law. The changes are intended to better align documentation requirements with transaction materiality and risk. For many SMEs, this means that a full Local File may no longer be required for certain categories of related-party transactions. However, the reform does not remove tran
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