Proposed legislation in Cyprus to introduce the provisions of the EU
Anti – Tax Avoidance Directive
The Cypriot Ministry of Finance (after consultations with the professional associations) has presented to the House of Representatives the draft legislation implementing the European Union (EU) Anti-Tax Avoidance Directive (ATAD).
The draft legislation introduces the limitation to interest deductibility, the concept of the Controlled Foreign Company (CFC) and the General Anti-Abuse Rule (GAAR).
The provisions of the new law (once approved) will apply to tax years starting on or after 1 January 2019.
The remaining two changes for implementing the full requirements of the ATAD, ie introducing the exit taxation regime and the rules countering hybrid mismatches within the EU are expected to be introduced and become effective in 2020.
Please find more info at Baker Tilly Cyprus website: