An important legislative proposal is being considered by Cyprus’s Council of Ministers regarding automatic exchange of information under the Assessment and Collection of Taxes Law (N.4/1978).

The proposed amendment establishes rules allowing the Cypriot Tax Commissioner to disclose taxpayer information as part of bilateral automatic information-sharing agreements with other nations, both within and outside the European Union.

While automatic exchange provisions already existed in Cypriot tax law through existing double taxation treaties, this amendment introduces a significant procedural change. Specifically, the requirement for attorney general approval before the Commissioner could share taxpayer data would be eliminated.

This streamlining of the disclosure process represents a modernization of Cyprus’s regulatory framework to facilitate more efficient international tax cooperation.