Cyprus has recently taken over the presidency of the Council of the European Union, which is the last before Ireland takes over next January. FTT, VAT simplification, the Savings Directive, simplification of interest and royalty payments between associated companies and discussions on technical issues on the CCCTB all feature on the Cypriot agenda for tax measures to be addressed during its tenure.

The Cypriot Presidency states that it is ready to explore the “enhanced cooperation” option (where a minimum of nine Member States can introduce a directive only applicable to themselves) for FTT as suggested by the Danish Presidency at the ECOFIN meeting held on 22 June.

The Presidency also plans to initiate work on the proposal for a Council Directive regarding the VAT treatment of vouchers, which seeks to tackle market inefficiencies created by differences in national rules across Europe.

Technical discussions will be continued on the proposal for a Council Directive on Energy Taxation.

Work will continue on the Directive on Taxation of Savings Income and on the adoption of the negotiating mandates for Savings Taxation Agreements with third countries. The Presidency will also work on the revision of the proposal for a Council Directive on a Common System of Taxation applicable to interest and royalty payments made between associated companies of different Member States. The combat of harmful practices and tax fraud and tax evasion also features on the Cypriot agenda.