The Cyprus Presidency has set out its taxation agenda for the first half of 2026, pledging to step up the fight against tax evasion and aggressive tax planning while advancing work on EU tax governance reforms, administrative cooperation, and key indirect tax initiatives, alongside efforts to enhance competitiveness and support international tax cooperation.
The Cyprus presidency presented its work programme for the first half of 2026 at the EU Economic and Financial Affairs Council (ECOFIN) meeting on 20 January, outlining its taxation priorities.
The Presidency will continue efforts to combat tax evasion, aggressive tax planning and harmful tax competition.
In the area of direct taxation, it will, inter alia, work on updating the EU list of non-cooperative jurisdictions, in line with the principles of tax good governance, as reflected in the Council Conclusions of February 2025.
The Presidency will initiate work on the upcoming recast of the Directive on administrative cooperation in the field of taxation, in line with the Council Conclusions of March 2025.
Building on the simplification agenda, the Cyprus Presidency stands ready to open discussions on the upcoming omnibus package to streamline direct taxation rules and enhance the competitiveness of EU businesses.
It will also advance the discussions of the Intergovernmental Negotiating Committee on the United Nations Framework Convention on International Tax Cooperation, aiming for a balanced and inclusive outcome that reflects both EU values and global consensus.
Efforts will be undertaken to continue work on the revision of the Tobacco Taxation Directive and to conclude the technical work regarding the revision of the proposal for the VAT rules on distance sales of imported goods and import VAT.
The Presidency will continue to efficiently address the cross-sectoral issues relating to the Carbon Border Adjustment Mechanism (CBAM) Regulation, including assessing the legal, financial, economic, and political feasibility of proposed solutions as well as, examining relevant proposals and initiatives, with a view to reaching a General Approach.
It also will stand ready to begin work on upcoming proposals including the proposal on the revision of the Regulation for administrative cooperation and combating fraud in the field of VAT.
