On 18 March 2021, the Cypriot Parliament voted for the amendment of the Cypriot Law on Administrative Cooperation in the field of Taxation (‘Law N. 205(I)/2012' or the ‘Law') implementing the European Union (EU) Directive on the mandatory disclosure and exchange of information on reportable cross-border arrangements (referred to as ‘the ‘Directive').
Once the Law is published in the Official Gazette, it will be effective as of 1st of January 2021 although the Law has retroactive effect and captures reportable cross-border arrangements made on or after 25 June 2018. In addition, guidance notes (in the form of a Ministerial Decree) will be issued in the next few weeks and will provide clarity over the interpretation of key terms and provisions of the Law.
In general, the Law is aligned to the minimum standards set by the Directive with minor deviations. A more detailed alert on the final provisions of the Law will follow next week as the final text of the Law is not yet publicly available.
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