The Cypriot Tax Department issued a circular on 6 July 2023, with effect as of 1 January 2022, introducing simplification measures regarding intercompany transactions below the threshold of €750,000 in aggregate per category of transaction per tax year.Additional simplification measures have been introduced with regard to specific subcategories of intercompany transactions, allowing the application of a safe harbor rate, assuming adequate documentation is maintained.The newly introduced tax circular also affects taxpayers with cross-border intercompany transactions, considering that these arrangements are reportable under mandatory disclosure rules.Executive summaryOn 6 July 2023, with retrospective effect as of 1 January 2022, the Tax Department...