Cyprus has confirmed its full operational compliance with the EU's Pillar Two global minimum tax rules under Law 151(I)/2024, following European Commission guidance on 29 May 2026. The Tax Department announced that multinational groups may now file Top-Up Tax Information Returns through Cyprus's central system, eliminating duplicate submissions to other EU Member States under the Administrative Cooperation Directive.
In an announcement on 15 June 2026, Cyprus has confirmed its compliance with the EU’s global minimum taxation rules under Law 151(I)/2024, following European Commission guidance issued on 29 May 2026
The Cyprus Tax Department has verified that Cyprus meets the technical requirements of the Pillar Two Directive with a Qualified Income Inclusion Rule (IIR) applicable to multinational enterprise groups. The framework applies retroactively to all fiscal years commencing on or after 31 December 2023, ensuring early compliance across tax periods.
A significant development for multinational groups involves tax return processing. As of 31 May 2026, Cyprus possesses the infrastructure and mechanisms to receive and manage Top-Up Tax Information Returns, with commitments to timely data exchange among EU Member States under the Administrative Cooperation Directive (DAC9).
Multinational groups may now submit their Top-Up Tax Information Returns through Cyprus’s central filing system. Under DAC9 provisions, this eliminates the need for duplicate local filings across other Member States, reducing administrative burden for international businesses operating within the EU.
The announcement solidifies Cyprus’s position as compliant with the OECD’s Pillar Two initiative, which establishes a 15% global minimum corporate tax rate for large multinational enterprises worldwide.
