The Cyprus Parliament passed two bills amending the Cyprus tax legislation on 9 December, with the goal of strengthening the Cyprus tax framework in order to prevent abuse, evasion, and avoidance of tax. The bills, which also were referenced in the Cyprus Recovery and Resilience Plan, will enter into force on 31 December 2022.
In addition, the Cyprus Tax Authority (CTA), on 22 November 2021, announced an additional extension of the submission deadline for DAC6 reports (without penalties) to 31 January 2022.
Cyprus also has several treaty updates
Actions to consider: Taxpayers should evaluate how the amended laws and tax treaties may affect their existing and planned structures as well as their business in advance of the 31 December 2022 entry into force.
Even though, with the DAC6 extension, taxpayers and intermediaries should not incur penalties for filings that were submitted by 31 January 2022, they should continue monitoring their historic transactions (from 25 June 2018), as well as ongoing cross-border arrangements.
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