Event: TechIsland Top Creators Conference

September 29 2022 11:00 – 13:00 at Parklane Hotel – Limassol

The TechIsland Non-Profit Organisation organised an event for its members at the Top Creators conference. Taxand Cyprus participated with a workshop titled “New Transfer Pricing regulations in Cyprus and the impact on tech companies from the new Transfer Pricing Law“.

Speakers:
Christos A. Theophilou, Partner at Taxand Cyprus
Costas Savva, Partner at Taxand Cyprus
Demis Ioannou, Partner at Taxand Cyprus

In June 2022, the Cyprus Parliament passed a new law introducing detailed transfer pricing legislation, marking a new era in company taxation, with effect from the 1st of January 2022. The OECD Transfer Pricing Guidelines, as amended from time to time, have been legislatively incorporated in Cyprus.

Transfer pricing deserves to be a top-of-mind priority. The OECD, United Nations, European Union, and individual countries have changed and keep changing their guidance in the field of transfer pricing due to the BEPS Project. The new guidance can be considered a game-changer and is expected to alter the transfer pricing outcomes in many situations. Intangibles are more important than ever before because they are an essential value driver for MNEs.
Companies, as well as tax authorities, need to have a better understanding of how value is created concerning the development and exploitation of their intangibles. A further focus is on how companies and tax authorities should deal with the three-tiered OECD approach related to transfer pricing documentation.

This workshop met the practical needs of transfer-pricing professionals in the technology sector. It focused on transfer pricing and intangibles (e.g., intra-group royalties) and the overlap between the IP Box and tax treaties.

Our attendees received a lot of valuable information for  better understanding of how value is created concerning the development and exploitation of their intangibles. Special attention was paid on how companies and tax authorities should deal with the three-tiered OECD approach related to transfer pricing documentation.