In order to ensure compliance with EU Directive 2015/2376/EU amending EU Directive 2011/16/EU on the compulsory automatic exchange of information in the field of taxation – in particular, in advance cross-border rulings – the Cyprus Tax Department has launched an initiative to gather information regarding cross-border decisions issued, modified or renewed between 2012 and 2016 (inclusive).
According to the Tax Department's instructions, the provision of information is not required for cross-border decisions that:
- were issued, amended or renewed between 2012 and 2013 and ceased to apply after December 31 2013;
- were adopted, modified or renewed before April 1 2016 (excluding those relating to persons principally engaged in financial or investment transactions) with regard to groups with a net turnover not exceeding €40 million for the preceding financial year;
- solely relate to one or more natural persons; or
- solely relate to legal entities that are resident in Cyprus and involve no other legal entities resident elsewhere.
Taxpayers with reportable cross-border decisions that were issued, modified or renewed between 2012 and 2016 (inclusive) must complete and sign the relevant reporting form (Form TD 219), including a request and decision summary, and submit it to the Tax Department's DAC 3 Central Directory. No form needs to be submitted for rulings requested in the final quarter of 2016 which have already been reported.
Originally published by International Law Office.
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