CYPRUS: Jurisdiction introduces legislation implementing the provisions of the EU anti-tax avoidance directive.

Added on 28/05/2019

As published on, Monday 27th May, 2019.


The Cyprus House of Representatives has recently voted a new law transposing the provisions of the European Union Anti-Tax Avoidance Directive (the "ATAD" or "Directive") into the local legislation.

The ATAD provides for minimum standards that need to be applied by all Member States and constitutes part of the Anti-Tax Avoidance Package established by the EU. The Directive aims to tackle tax avoidance practices and aggressive tax planning.

The ATAD provisions set rules for the following aspects:

Applicable as from 1st of January 2019:

1. Controlled Foreign Company (CFC) rule

2. Interest Limitation rule

3. General Anti abuse rule (GAAR)

Applicable as from 1st of January 2020:

4. Exit Taxation rule

5. Hybrid Mismatches rule.

The provisions of the rules applicable as from 1st of January 2020 are not yet introduced into the Cyprus legislation however this is expected to be done before the end of 2019.