Cyprus: The Cabinet of Cyprus passes Bill for the formation of Unified Single Tax Authority

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Cyprus: The Cabinet of Cyprus passes Bill for the formation of Unified Single Tax Authority

michaelides.jpg

zambartas.jpg

Antonis Michaelides


Michalis Zambartas

On April 23 2014 the Cabinet of Cyprus passed a Bill providing for the establishment of a unified single tax authority which will deal with all tax issues in the country. This new unified body will essentially absorb the powers of the Cyprus Income Tax Authority and the Cyprus VAT Authority while these two bodies will be abolished. Having done so, the Bill has been referred to the Parliament for approval and therefore it is expected to be examined in the first week of June 2014.

According to the acting Cyprus government spokesman, the Bill provides, inter alia, for the abolishment of the two directorship positions in the two fiscal bodies (Income Tax Authority and VAT Authority) and the appointment of a single tax official along with two assistant tax officials.

The government believes that such unification will highly contribute to a more efficient customer service which will have a positive impact on the country's revenues mainly due to the more organised and rigorous scrutiny not only of the taxpayers but also of the employees.

It is further anticipated that the unification, along with the reinforcement of the relevant legal framework, the simplification of the proceedings and the modernisation of the information systems will certainly contribute to the expedient handling of the authority's obligations as well as to the enhancing of tax awareness of the taxpayers.

Finally, it should be highlighted that this movement has been part of the government's commitments towards TROIKA and the international lenders. In any case, the proposed reshuffle is following the trend in almost all the EU countries and it is undoubtedly something that should have been done ages ago. In consideration with the above, it is anticipated that the Bill will pass relatively easily by the Cypriot parliament and that the new legislation is almost on the doorsteps.

Antonis Michaelides (antonis.michaelides@eurofast.eu) and Michalis Zambartas (michalis.zambartas@eurofast.eu)

Eurofast, Cyprus Office

Tel : +357 22 699 222

Website : www.eurofast.eu

more across site & shared bottom lb ros

More from across our site

HMRC expects advisers to meet ever-higher compliance criteria. After 24 consecutive qualified audit opinions, many will ask whether HMRC should hold itself to the same standards
The purchase of Marosa represents the second major tax tech consolidation this week, raising questions of a broader industry trend
Peru’s approach to TP is increasingly at odds with OECD-style profitability policies, exposing multinational groups to asymmetric tax adjustments
Hany Elnaggar examines how the region's legacy economic substance regimes and the OECD's pillar two framework are converging on the same underlying test
The deals for TP Accurate and Intra Pricing Solutions will enhance Alphatax’s ability to support clients with the full TP lifecycle, the tax tech provider claimed
The DS Advocates partner discusses career reinvention, tax disputes and why advisory and litigation experience should complement one another
Lindsay Clayton’s arrival at Baker McKenzie continues the firm’s storied pursuit of ex-US government lawyers, a strategy reinforced by robust World Tax rankings
Shared transaction semantics, governed data and reusable ERP design may prove the most significant benefits of the UK's move to Peppol
As pillar two reshapes global tax competition, the UK faces a crucial challenge: how to remain attractive to multinationals without sacrificing tax revenues
Pillar two may be raising less than expected, but professor René Matteotti says the regime is still changing multinational tax behaviour
Gift this article