On 13 May 2020, OECD has published the updated position of signatoriesā€™ countries regarding the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI). Accordingly, MLI entered into force for Cyprus on 1 May 2020.

The MLI is generally effective from 1 January 2021 in respect of withholding taxes and for taxable periods beginning on or after 1 November 2020 in respect of other taxes (six months after entry into force). Cyprus signed the MLI on 7 June 2017 and deposited the instrument of ratification on 23 January 2020.