Cyprus has aligned its domestic legislation with EU Directive 2016/881/EU through Law 33(I)/2018, which modernizes administrative cooperation procedures for tax matters across the European Union.

Key Changes

The legislation redefines “automatic exchange” and introduces mandatory country-by-country reporting requirements. Multinational enterprises with a Cyprus tax residence must file these reports within 12 months of each fiscal year’s conclusion. The initial reporting period covers fiscal years beginning January 1, 2017 or later.

Reporting Requirements

Country-by-country reports must include consolidated information for each jurisdiction where the multinational group operates, along with identification details for all constituent entities. Following submission, the Cyprus Tax Department notifies counterparts in other EU member states about information pertaining to entities located elsewhere within 15 months from the reporting period’s end.