After the partial adoption of the EU Anti-Tax Avoidance Directive (ATAD I) of 12 July 2016 in 2019, on 19 June 2020 the Parliament of Cyprus voted into law the remaining provisions of ATAD I, as well as the provisions of the EU ATAD II of 29 May 2017. On 3 July 2020, the law was published in the Official Gazette.
The Law transposes the remaining ATAD measures in the law, namely:
- Exit taxation (ATAD I); and
- Hybrid mismatches (including reverse hybrid mismatches and tax residency mismatches) (ATAD II).
The law is entered into force with effect on or after 01 January 2020 as regards exit taxation, hybrid mismatches and tax residency mismatches and 01 January 2022 as regards reverse hybrid mismatches.
