Tax Reforms in Cyprus

As a well-established international business centre and a leading candidate for membership of the European Union (EU), Cyprus has come under considerable scrutiny in recent years, particularly in relation to its tax system.

One of its first significant responses was to commit itself in 2000 to the Organization for Economic Cooperation and Development to eliminate harmful tax practices by the end of 2005, and to embrace international standards of transparency, exchange of information and tax competition.

Cyprus, as an aspiring member of the EU, must harmonize its laws and practices with the acquis communautaire. In the fiscal field, it must conform to the EU Code of Conduct and the rules on business taxation, which means a fundamental reform of its tax regime.