On 19 March 2019, the Cypriot Ministry of Finance (MoF) published a draft law implementing EU Directive 2018/822/EU of 25 May 2018 on the mandatory disclosure and exchange of cross-border tax arrangements into national legislation.
The Directive amending Directive 2011/16/EU regarding the mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements entered into force on 25 June 2018.
The Directive commonly known as DAC6 requires member states to implement rules requiring intermediaries (such as lawyers, law firms, accountants, auditors, banks etc.) and relevant taxpayers (i.e. where there is no intermediary or where professional secrecy privilege applies) to report information on certain cross-border tax arrangements to the tax authority. EU Member States are to adopt and publish national laws required to comply with the Directive by 31 December 2019. The Cypriot legislation will take effect from 1 July 2020.
