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Tax Amends Permit Increased Cooperation With EU States
The aim of the amended law is to harmonise the Cyprus legislation with the EU Directive 2011/16/EU in the field of taxation and to allow more effective administrative cooperation with other member states.
Under the new law the procedure for exchange of information, such as providing information upon request, automatic and spontaneous exchange of information, other forms of administrative cooperation including participation in administrative inquiries as well as simultaneous controls, has been clarified. This makes it possible to cover all natural and legal persons of the EU.
Amendments are applicable from 1 January 2013, except section 9 which will come into force on 1 January 2015. Section 9 provides for the presence of the applicant authority in administrative services and participation in administrative inquiries.
Your Taxand contact for further queries is:
T. +357 22 699 222
This is a positive step taken by the Cyprus Government as it brings the taxation in line with the EU Directive, allowing increased cooperation with other member states. Corporations should keep afresh of any further developments in order to stay up-to-date and compliant with any amended laws.