In-scope Groups
The above provisions apply to constituent entities in Cyprus which are members of a multinational enterprise (MNE) Group or large-scale domestic Group with annual revenue of at least €750 million in the consolidated financial statements of the ultimate parent entity (UPE) in at least two of the four fiscal years immediately preceding the relevant fiscal year.
Reporting obligations
1. Top-up Tax Information Return (TTIR) – Form TD336
For the transition year, each Cyprus constituent entity is generally required to submit the TTIR, unless the UPE or another designated filing entity submits the return centrally in accordance with the applicable rules.
In this respect:
· Where the UPE or the designated filing entity is located in Cyprus, the TTIR may be filed in Cyprus on behalf of the group, relieving other Cyprus constituent entities from separate TTIR filing.
· Where the TTIR is filed in another EU Member State or an eligible third country under the applicable framework, Cyprus constituent entities are relieved from an individual TTIR filing obligation.
2. Local Cyprus Notifications
Even where a group does not have a separate Cyprus TTIR filing obligation, local notification requirements still apply for the Cyprus constituent entities:
- In case the TTIR will be filed in another EU Member State or eligible third country, each Cyprus constituent entity should submit a notification (form TD331) about the identify and jurisdiction of the entity which will file the TTIR. Such notification may be submitted by a designated local entity on behalf of all the Cyprus constituent entities (form TD333).
- Each Cyprus constituent entity should file the notification (form TD332) which includes certain information about the group, the UPE and the constituent entities. Such notification may be submitted by a designated local entity on behalf of all the Cyprus constituent entities (form TD334).
Each constituent entity, or designated local entity, is obligated to notify, before the lapse of the relevant deadlines for the said fiscal year, the Commissioner in respect of any changes which relate to the content of the previously submitted notification, including cases where a constituent entity ceases to be a member of the group.
3. IIR Top-up Tax Due Return (form TD335) and payment of Top-Up Tax
Where the Cyprus Parent Entity of the Group is required to apply the Income Inclusion Rule (“IIR”), an IIR Top-Up Tax Due Return (TD335) should be submitted and the relevant top-up taxes should be paid.
The return is required even where the resulting amount of Top-Up Tax is nil.
The relevant Pillar Two notifications and returns should be submitted electronically through the Tax For All (“TFA”) platform, directly by the taxpayers or through an authorized representative.
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