In brief
On 20 November 2020 the EU Code of Conduct Group (Business
Taxation) (the “Group”) issued a report, approved by
ECOFIN on 27 November 2020, whereby the Cyprus NID regime has been
assessed by the Group as "not harmful" since its
introduction as from 1 January 2015.
In detail
As a background, the Group requires EU Member States to refrain
from introducing any new harmful tax measures
("Standstill") and amend any laws or practices that are
deemed to be harmful in respect of the principles of the Group
("Rollback"). For the purpose of identifying such harmful
measures the Group set out the criteria against which any
potentially harmful measure is to be tested.
Since 2018 the Group set as one of their work priorities the
monitoring and review from a harmful tax perspective all EU Member
States' NID regimes. As part of the Cyprus NID review by the
Group, the Group recommended certain amendments to the Cyprus NID
regime which were enacted by Cyprus earlier
