CYPRUS: Cyprus delays 15% tax on multinationals

Cyprus has yet to enforce the new EU rules introducing a minimum effective tax rate of 15% for multinational corporations operating within EU member-states.

Alongside nine other countries, Cyprus was expected to have implemented the new framework from January 1, 2024, unanimously agreed upon by member-states in 2022, formalizing the EU’s adoption of the Pillar 2 rules as part of the global tax reform agreement in 2021.

According to a Brussels official, the European Commission has initiated a countdown to issue a reasoned opinion to Cyprus. Infringement proceedings are legal actions through which the Commission calls on member-states to comply with EU law. The process could culminate in the Commission taking the matter to the EU court and imposing fines.

The rules apply to every large group, including the financial sector, with combined financial income exceeding €750 million annually and with a parent or subsidiary company established in an EU member-state. In Cyprus, such companies number around 15-20.

The Commission says the 15% tax on multinationals brings greater fairness and stability to the tax landscape in the EU and globally.

12 February 2024

RUSSIA: EU Commissioner Calls For Taxing Firms That Refuse To Leave Russia

European Commissioner Virginjus Sinkevicius has proposed raising more money for Ukraine by imposing a special tax on Western firms that refuse to cut ties with Russia. “We still have companies that

Read More
24 June 2024

CARIBBEAN: Caribbean Countries Want ‘Golden Passports’ to Continue—but the EU Has Concerns

In recent years, so-called golden-passport programs have come under increased scrutiny. But a handful of nations are hoping that they’ll be allowed to continue. For five Caribbean countries, citizenship

Read More
12 June 2024

GLOBAL TAX: The OECD’s push for global taxes continues

The OECD is developing ways to increase taxes on international businesses, cross-border investment and global levies on wealth and energy generation. he landscape of global tax policy is undergoing

Read More
20 April 2024

MAURITIUS: India-Mauritius DTAA Amendment Closes Tax Avoidance Loophole

India and Mauritius have signed the protocol amending their Double Taxation Avoidance Agreement (DTAA), which now incorporates the Principal Purpose Test (PPT). This provision serves as a criterion

Read More