Latest CRS Developments For Trusts In Cyprus

Cyprus is showing its commitment to global tax transparency with the implementation of the Common Reporting Standard (CRS). The CRS, developed by the Organisation for Economic Co-operation and Development (OECD), facilitates the automatic exchange of financial account information in tax matters between participating jurisdictions, aiming to combat tax evasion and enhance global tax compliance. Cyprus is a participating jurisdiction under the CRS for many years now, in fact its first annual automatic exchange of financial accounting information under the CRS took place in September 2017 regarding the 2016 tax year.

The "Guidance notes on the automatic exchange of financial account information" issued by the Cyprus Tax Department ("TD") stipulate the relevant requirements regarding trusts categorized as either financial institutions or passive non-financial entities so that compliance with the CRS reporting obligations can be achieved. Below is an overview of the key